Big Fish Company's inventory records for its retail division show the following at July 31:

Jul 1 Beginning Inventory ...... 6 Units @ $165 = $ 990

15 Purchase ........................... 5 Units @ 166 = $ 830

26 Purchase ............................10 Units @ 175 = $ 1,750

At July 31, 9 of these units are on hand.

1. Compute the cost of goods sold and ending inventory, using each of the following four inventory methods:

Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific identification, then (b) average cost, then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.)

REQUIREMENTS:

1. Compute cost of goods sold and ending inventory, using each of the following methods:

a. Specific Identification, with three $165 units and six $175 units still on hand at the end

b. Average cost

c. FIFO

d. LIFO

2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?