Rod & Roy Co. reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 300 units, 100 from each of the last three purchases. Determine the cost assigned to ending inventory and to cost of goods sold using

(a) specific identification,

(b) weighted average,

(c) FIFO, and

(d) LIFO. Which method yields the highest net income? lj4

Transcribed Image Text:

Jan. 1 Mar. 7 Beginning inventory Purchase 200 units @$2.00 = $ 400 440 units @$2.25 990 July 28 Purchase 1080 units @$2.50 = 2,700 Oct. 3 Purchase 960 units @ $2.80 = 2,688 Dec. 19 Purchase Totals .... 3,000 units 320 units @$2.90 = 928 $7,706