Assume that the inventory records 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. What is the percentage difference in cost of goods sold between the
highest and lowest methods?

Transcribed Image Text:

January 1 January 29 Beginning inventory Purchases 10 units at cost of $100 500 units at cost of $103 January 30 Sales 500 units at a price of $110