At the end of its first year of operations, Flint, Inc. is experiencing cash flow problems. The following information has been accumulated during the year, 2019:

Purchases

January 20,000 units @ $8

March 19,000 units @ $9

October 17,500 units @ $10

During the year, Flint sold 40,000 units at $12 each. The president doesnt understand how to report inventory in the financial statements because no record of the cost of the units sold was kept as each sale was made.

a. Determine the number of units on hand at the end of the year.

b. Calculate the cost of goods sold for 2019 and ending inventory as of December 31, 2019 for each of the following three methods (a) FIFO, (b) LIFO, and (c) average cost (round up to the nearest penny).

FIFO LIFO AVERAGE

Cost of goods sold 2019: ___________ ___________ ____________

Ending inventory, December 31, 2019: ___________ ___________ ____________

c. Which costing method can help Flint with cash flow problems? Explain briefly your answer.