QUALITATIVE ANALYSIS: It is advisable to document all your work and calculations as applicable.

The following are data available for Blue Grass & High Weed for the month of June:

Sales 1200 units

Beginning Inventory 300 units @ 2.00

Purchases in Chronological order 600 units @ 2.10

400 units @ 2.20

500 units @ 2.30

A) Calculate cost of goods sold and ending inventory under the following cost flow assumptions:

1) Weighted average

2) FIFO

3) LIFO

B) Assume net income using the weighted average cost-flow assumption was $6,400.

Calculate net income under FIFO and LIFO.