Use the data for Ontario, Inc., in Exercise 6-16A to answer the following:

Requirements
1. Compute cost of goods sold and ending inventory, using each of the following methods:
a. Specific unit cost, with three $155 units and five $165 units still on hand at the end
b. Average cost
c. First-in, first-out
d. Last-in, first-out
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 goodssold?

Transcribed Image Text:

= S 620 7 units @ 155 = S1.085 12 units @ 165= $1,980 Jan 1 Beginning inventory 4 units @ $155 26 Purchase