Use the data for Spear Corporation in E6-30B to answer the following.

Requirements

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

a. Specific identification, with seven $160 units and four $170 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?

E6-30B

Transcribed Image Text:

May 1 Beginning inventory 10 units @ $160 $1,600 !! 15 Purchase. 5 units @ 161 805 26 Purchase. 14 units @ 170 2,380