Exercise 5-15 Periodic: Cost flow assumptions LO P3

Floras Gifts reported the following current-monthly data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 60 units50 units from the January 6 purchase, and 10 units from the January 25 purchase.

Jan.	1	Beginning inventory	138	units	@ $3.00	=	$	414
Jan.	6	Purchase	300	units	@ $2.80	=		840
Jan	17	Purchase	540	units	@ $2.30	=		1,242
Jan.	25	Purchase	22	units	@ $2.00	=		44
		Totals	1,000	units			$	2,540

Determine the cost assigned to ending inventory and to cost of goods sold for the following. (Round your average cost per unit to 2 decimal places.)

Which method yields the lowest net income?

	Specific identification
	LIFO
	FIFO
	Weighted average