After you have completed the requirements of P6-2A, consider these additional questions.

Answers are on the other tab in this file.

1.

Assume that the number of units sold increased to 12,000. What is the impact on ending inventory and cost of goods sold if the

FIFO method is used?

2.

Assume that the number of units sold increased to 12,000. What is the impact on ending inventory and cost of goods sold if the

LIFO method is used?

3.

Assume that the number of units sold increased to 12,000. What is the impact on ending inventory and cost of goods sold if the

average cost method is used?