8Allocating product cost between cost of goods sold and ending inventory LO 5-6

Adams Co. started the year with no inventory. During the year, it purchased two identical inventory items at different times. The first purchase cost $950 and the other, $1,250. Adams sold one of the items during the year.

Required

8 Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory on the year-end financial statements, assuming use of following cost flow assumptions:

a. FIFO?

b. LIFO?

c. Weighted average?

FIFO LIFO Weighted Average

COST OF GOODS SOLD ( ) ( ) ( )

ENDING INVENTORY ( ) ( ) ( )