1. Alternative Inventory Methods

   Totman Company has the following transactions during the months of January and February:

   Date	Transaction	Units	Cost/Unit
   January 1	Balance	200
   10	Purchase	50	$25
   22	Sale	40
   28	Purchase	60	27
   February 4	Purchase	40	28
   14	Sale	50
   23	Sale	20

   The cost of the inventory at January 1 is $24, $23, and $15 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.

   Required:

   1. Compute the cost of goods sold for each month and the inventories at the end of each month for the following alternatives:
      1. FIFO periodic

         	Cost of Goods Sold	Ending Inventory
         January	$	$
         February	$	$

      2. FIFO perpetual

         	Cost of Goods Sold	Ending Inventory
         January	$	$
         February	$	$

      3. LIFO periodic

         	Cost of Goods Sold	Ending Inventory
         January	$	$
         February	$	$

      4. LIFO perpetual

         	Cost of Goods Sold	Ending Inventory
         January	$	$
         February	$	$

      5. Weighted average (Round unit costs to 4 decimal places and round final answers to nearest dollar.)

         	Cost of Goods Sold	Ending Inventory
         January	$	$
         February	$	$

      6. Moving average (Round unit costs to 4 decimal places. Round final answers to nearest dollar.)

         	Cost of Goods Sold	Ending Inventory
         January	$	$
         February	$	$

   2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results.

      January	Cost of Goods Sold	Ending Inventory
      Difference	$	$
      February	Cost of Goods Sold	Ending Inventory
      Difference	$	$

   3. If the company had purchased an additional 25 units for $30 each on February 27, compute the cost of goods sold for February under FIFO periodic and LIFO periodic.

      February	FIFO periodic:	LIFO periodic:
      Cost of Goods Sold:	$	$

   4. When computing inventory turnover ratios, it's preferable to use a measure because it avoids distortions caused by including costs in inventory. Use of the preferable method results in a inventory turnover.