2) Sea Travel sells motor boats. One of Sea Travels most popular models is the Wing. During the current year, Sea Travel purchased 24 Wings at the following costs.

Purchase Date Units Purchased Unit Cost Total cost May 2 4 $7000 $28,000 May 20 2 $7100 14,200 May 25 8 $7250 58000 June 5 10 $7300 73000 24 $173,200

On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a) the cost of goods sold on May 28 and b) The ending inventory of Wing boats at June 5, using the following cost flow assumptions:

c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:

Show Calculation. Points will be given ONLY if you show computations. a. Average cost (15 points)

COGS:

Ending inventory:

Date Debit Credit Db Cr

b. FIFO (15 points)

COGS:

Ending inventory:

Date Debit Credit Db Cr

c. LIFO (15 points)

COGS:

Ending inventory:

Date Debit Credit Db Cr