FIFO/LIFO/AVERAGE COST PROBLEM:

Washington Bottom Company reports the following for the month of June.

Units Unit Cost Total Cost

June 1 Inventory 300 $5 $1,500

12 Purchase 450 6 2,700

23 Purchase 750 8 6,000

30 Inventory 180

Instructions

(a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO.

(b) Compute the cost of the ending inventory and the cost of goods sold using the average-cost method.