Exercise #3

10 points

The Stoney Company sells many products. Wolie is one of its popular items. Below is an analysis

of the inventory purchases and sales of Wolie for the month of March. Stoney Company uses

the periodic inventory system.

Units

Units

Unit Cost

Unit Selling Price

1-Mar

Beginning inventory

1,500

$0.80

3-Mar

Purchase

6,000

$0.84

4-Mar

Sales

5,000

$2.00

16-Mar

Purchase

3,000

$0.88

25-Mar

Purchase

4,500

$0.96

30-Mar

Sales

4,000

$2.00

(a) Using the FIFO assumption, calculate the cost of goods sold and ending inventory for March.

(Show and label computations. Perform all calculations to two decimal places.)

b)

Using the Average Cost assumption, calculate the cost of goods sold

and ending inventory for March.

(Show and label computations. Perform all calculations to two decimal places.)

c)

Using the LIFO Cost assumption, calculate the cost of goods sold

and ending inventory for March.

(Show and label computations. Perform all calculations to two decimal places.)