Griffin

Company's inventory records for its retail division show the following at

December

31:

Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific identification, then (b) average cost, then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.)

	Number
	of units
Cost of goods sold
Ending inventory

Requirements

Dialog content starts

1.

Compute cost of goods sold and ending inventory, using each of the following methods:

a.	Specific identification, with seven $165 units and four $175 units still on hand at the end
b.	Average cost
c.	FIFO
d.	LIFO

2.

Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?

Data table

Dialog content starts

Dec 1	Beginning inventory	9 units @ $165 = $1,485
Dec 15	Purchase	5 units @ $166 = $830
Dec 26	Purchase	13 units @ $175 = $2,275