Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 50 units at $20 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 154-unit purchase at $23 per unit; the second was a 192-unit purchase at $24 per unit. During the period, it sold 264 chairs.

Required

Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses

a.

FIFO:

**See attachments**

\fAnswer: FIFO Total COGS Units Unit cost cost of goods sold 50 20 1000 154 23 3542 60 24 1440 264 5982 FIFO Total ending Units LIFO Units Total COGS LIFO Unit cost ending inventory 132 24 3168 Unit cost cost of goods sold 194 24 4656 70 23 1610 264 6266 Units Total ending Unit cost Ending inventory 50 20 1000 82 23 1886 132 2886 Average Cost of goods sold Ending inventory 264 134 23 23 6100 3096 Answer: FIFO Total COGS Units Unit cost cost of goods sold 50 20 1000 154 23 3542 60 24 1440 264 5982 FIFO Total ending Units LIFO Units Total COGS LIFO Unit cost ending inventory 132 24 3168 Unit cost cost of goods sold 194 24 4656 70 23 1610 264 6266 Units Total ending Unit cost Ending inventory 50 20 1000 82 23 1886 132 2886 Average Cost of goods sold Ending inventory 264 134 23 23 6100 3096