Assume that Gode Company reports the following initial balance and subsequent purchase of inventory.

Assume that 1,700 units are sold during 2009. Compute the cost of goods sold for 2009 and the ending inventory on the 2009 balance sheet under the following inventory costing methods:
\begin{tabular}{|c|c|c|}
\hline Beginning inventory, 2009 & 400 units @ \$10 each & \(\$ 4,000\) \\
\hline Inventory purchased in 2009 & 700 units @ \$12 each & 8,400 \\
\hline Cost of goods available for sale in 2009 & 1,100 units & \(\$ 12,400\) \\
\hline \end{tabular}

a. FIFO

b. LIFO

c. Average Cost

Transcribed Image Text:

Beginning inventory, 2009 Inventory purchased in 2009. Cost of goods available for sale in 2009 1,000 units @ $100 each $100,000 2,000 units @ $150 each 3,000 units 300,000 $400,000