The inventory, purchases, and sales of Product ISO for March and April are listed below. The company closes its books at the end of each month. It uses the periodic inventory system.

Required 1. Compute the cost of the ending inventory on March 31 and April 30 using the average-cost method. In addition, determine cost of goods sold for March and April. Round unit costs to cents and totals to dollars.
2. Compute the cost of the ending inventory on March 31 and April 30 using the FIFO method. Also determine cost of goods sold for March and April.
3. Compute the cost of the ending inventory on March 31 and April 30 using the LIFO method. Also determine cost of goods sold for March and April.
4. User Insight: Do the cash flows from operations for March and April differ depending on which inventory costing method is used—average-cost, FIFO, or LIFO? Explain.
Perpetual Inventory System and Inventory Costing Methods

Transcribed Image Text:

Mar. Beginning inventory 10 Purchase 60 units @ $49 100 units @ $52