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

$($Click the icon to view the accounting records.$)$

At July $31,10$ of these units are on hand.

Read the requirements.

Requirement $1.$ Compute 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 $($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.$)$

Cost of goods sold

Ending inventory

Compute cost of goods sold and ending inventory, using each of the

following methods:

a$.$ Specific identification, with five $$150$ units and five $$160$ units still on hand

at the end

b$.$ Average cost

c$.$ FIFO

d$.$ LIFO

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?

Clear all