Inventory Costing Methods} Fayed Company began operations in February 2018. Fayed's accounting records provide the following data

Question:

Inventory Costing Methods}

Fayed Company began operations in February 2018. Fayed's accounting records provide the following data for the remainder of 2018 for one of the items the company sells:

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Fayed uses a perpetual inventory system. All purchases and sales were for cash.
\section*{Required:}
1. Compute cost of goods sold and the cost of ending inventory using FIFO.
2. Compute cost of goods sold and the cost of ending inventory using the weighted average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest penny.)
3. Prepare the journal entries to record these transactions, assuming Fayed chooses to use the FIFO method.
4. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes?
\section*{OBJECTIVE (2) 3 (4) 5 \\ Problem