Problem 2. Gresa Inc. had beginning inventory of 7,000 units in the total amount of $14,000...

 

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Problem 2. Gresa Inc. had beginning inventory of 7,000 units in the total amount of $14,000 and ending inventory of 17,000 units. Purchases of the company were made quarterly as follows Quarter Units 1 2 3 4 50,000 40,000 40,000 60,000 Unit Cost 2.20 2.35 2.50 2.70 Total Cost 110,000 94,000 100,000 162,000 Instructions: a) Evaluate cost of goods sold and ending inventory using FIFO cost flow method (1 point) b) Evaluate cost of goods sold and ending inventory using LIFO cost flow method (1 point) Problem 2. Gresa Inc. had beginning inventory of 7,000 units in the total amount of $14,000 and ending inventory of 17,000 units. Purchases of the company were made quarterly as follows Quarter Units 1 2 3 4 50,000 40,000 40,000 60,000 Unit Cost 2.20 2.35 2.50 2.70 Total Cost 110,000 94,000 100,000 162,000 Instructions: a) Evaluate cost of goods sold and ending inventory using FIFO cost flow method (1 point) b) Evaluate cost of goods sold and ending inventory using LIFO cost flow method (1 point)