B E F G H K L M N O P 0 R HHEC Task 2: Sophia is unsure of how to determine the cost of ending inventory and the cost of goods sold at the end of the year. You explain that one of three cost flow assumptions can be used to determine these amounts. Sophia provides you with the value of beginning inventory and a list of purchases made throughout the year. HAPPY HOME Environmental Cleaning 1 2 3 During the month of February Year 3, HHEC.COM made the following purchases 4 5 Units Unit Cost Total Cost) 6 Beginning Inventory, February 1 2001 90 18,000 7 February 10 Purchase 3001 1001 30,000 8 February 21 Purchase 400 110 44,000 9 February 28 Purchase 100 120 12.000 10 Total 1,000 104,000 11 12 At the end of February, there were 870 units on hand. Determine (1) ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average cost). 13 14 Answer: 15 LIFO - Units Sold: 130 16 Cost of Goods Sold: Units Cost Total 17 18 19 20 21 Ending Inventory Units Cost 22 23 24 25 26 27 Units Cost 28 29 FIFO - Units Sold: 130 30 Cost of Goods Sold: 31 32 33 34 Ending Inventory 35 36 37 Units Cost Unit 2-Challenge 4-Task 2 + FIFO - Units Sold: 130 Cost of Goods Sold: Units Cost Ending Inventory Units Cost Units Cost Average Cost Average Cost - Units Sold: 130 Cost of Goods Sold: Ending Inventory