Question
Epperly Company Inc. had a beginning inventory of 200 units of Product MLN at a cost of $8 per unit. During the year, purchases were:
Epperly Company Inc. had a beginning inventory of 200 units of Product MLN at a cost of $8 per unit. During the year, purchases were:
Feb. 20700 units at $ 9Aug. 12400 units at $11
May 5 500 units at $10Dec. 8 100 units at $12
Epperly Company's sales during the year totaled 1,400 units.
(a) Determine the cost of goods available for sale.
(b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flowmethods (FIFO, LIFO, and average cost). Prove the accuracy of the cost of goods sold under eachmethod. (Round average unit cost to three decimal places.)
(c) Which cost flow method results in the lowest inventory amount for the balance sheet?
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