Assume that Cycle Guys bought and sold a line of mountain bikes during December as follows: Cycle

Question:

Assume that Cycle Guys bought and sold a line of mountain bikes during December as follows:

Cycle Guys uses the perpetual inventory system.
Requirements
1. Compute the cost of ending inventory under FIFO.
2. Compute the cost of ending inventory under average cost.
3. Which method results in a higher cost of ending inventory?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...