Andy's Welding Co. is a merchandiser of mobile welding machines. The most popular of Andy's
models is the MW1334. During the current year, Andy's purchased 12 of these mobile welding
machines at the following costs:
Purchase Date Units Purchased Unit Cost Total Cost
March 14 3 $2,100 $6,300
June 7 5 $1,900 $9,500
September 22 2 $2,300 $4,600
November 2 2 $2,500 $5,000
12 $25,400
On August 30, Andy's Welding Co. sold six MW1334 mobile welding machines to Noah's Beads,
Inc. The remaining six mobile welding machines remained in inventory at December 31.
a. Prepare the journal entry to record cost of goods sold relating to the sale on August
30, using the following cost flow assumptions. You may omit the journal entry to
record sales revenue.
i. Average cost
ii. FIFO (First-In, First-Out)
iii. LIFO (Last-In, First-Out)