1.

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

a.	Specific identification, with seven $165 units and four $175 units still on hand at the end
b.	Average cost
c.	FIFO
d.	LIFO

2.

Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?

 

Data Table Jul 1 Beginning inventory. 4 units @ $ 150 = $ 600 %3D 15 Purchase 5 units @ 151 = $ 755 26 Purchase 11 units @ 160 = $ 1,760