Question
Cedar Valley Co. uses a periodic inventory system. It entered into the following purchases and sales transactions for August. Date Activities Units Acquired at Cost
Cedar Valley Co. uses a periodic inventory system. It entered into the following purchases and sales transactions for August.
Date | Activities | Units Acquired at Cost | Units Sold at Retail |
Aug. 1 | Beginning inventory | 130 units @ $65 per unit | |
Aug. 6 | Purchase | 390 units @ $70 per unit | |
Aug. 12 | Sales | 420 units @ $100 per unit | |
Aug. 19 | Purchase | 270 units @ $75 per unit | |
Aug. 27 | Purchase | 310 units @ $80 per unit | |
Aug. 31 | Sales | 260 units @ $110 per unit |
For specific identification, the August 12 sale consisted of 80 units from beginning inventory and 340 units from the August 6 purchase; the August 31 sale consisted of 90 units from the August 19 purchase and 170 units from the August 27 purchase.
- Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)
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