Use the data for Langley Inc. in exercise 5-14 to answer the following

{Requirements}

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

a. Specific unit cost, with two \(\$ 150\) units, three \(\$ 160\) units, and five \(\$ 170\) units still on hand at the end

b. Weighted-average cost

c. First-in, first-out cost 2. Which method would be most relevant to producing the highest net income? Why?

Exercise 5-14

Langley Inc. inventory records for a particular development program show the following at October 31, 2020:

At October 31, ten of these programs are on hand. Langley uses the perpetual inventory system.

Transcribed Image Text:

Oct. 1 Beginning inventory....... 15 Purchase. 26 Purchase.................. 5 units @$150 $ 750 11 units 160= 1,760 5 units @ 170 = 850