Assume

that the inventory record for the Gotham Steel Corp. show the following

information:

A. Compute the cost of goods available for sale
B. Compute the cost of the ending inventory of 10 units under:
a. FIFO
b. LIFO
c. Weighted average cost
C. Compute the cost of goods sold under

a. FIFO
b. LIFO
c. Weighted average cost
D. Which method would show the highest and lowest cost of goods sold?
E. Which method would the company probably prefer for tax purposes?

Transcribed Image Text:

January 1 Beginning inventory January 23 Purchases January 30 Sales 10 units at cost of $100 10 units at cost of $103 10 units, at a price of $110