Use the data for Cranwell Company in E6-18A to answer the following.

May 1 Beginning inventoryl ........................... 6 units® $150 = $ 900

15 Purchase ............................................... 4 units @ 151 = $ 604

26 Purchase ............................................. 14 units® 160 = $2,240

Requirements

1. Compute cost of goods sold and ending inventory, using each of the following methods:

a. Specific unit cost, with five $150 units and five $160 units still on hand at the end

b. Average cost

c. FIFO

d. LIFO

2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?