Exercise 5-15A Periodic: Cost flow assumptions LO P3

Flora's Gifts reported the following current-month data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 84 units62 units from the January 6 purchase, and 22 units from the January 25 purchase.

Jan.	1	Beginning inventory	195	units	@ $4.40	=	$	858.00
Jan.	6	Purchase	374	units	@ $4.00	=		1,496.00
Jan.	17	Purchase	600	units	@ $3.50	=		2,100.00
Jan.	25	Purchase	34	units	@ $3.20	=		108.80
		Totals	1,203	units			$	4,562.80

Required:

Determine the cost assigned to ending inventory and to cost of goods sold for the following.(Round your answer to the nearest whole number.)

Which method yields the lowest net income?

Weighted average

Specific identification

LIFO

FIFO