GULF TRAVELERS sells motor boats. One of most popular models is the Wing. During the current year, gulf Travel purchased 12 of these boats at the following costs: (Marks 6)

Purchase Date Purchased UNIT Cost Total Cost

Apr. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 $8,000 $32,000

Apr. 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 8,200 41,000

May 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 8,500 25,500

12 $98,500

On April 28, Gulf Travel sold five Wings to the Jack Sport racing team. The remaining seven boats remained in inventory at June 30, the end of Gulf Travels fiscal year.

Assume that Gulf Travel uses a perpetual inventory system. (See the data given above.)

Instructions

a. Compute (a) the cost of goods sold relating to the sale on April 28 and (b) the ending inventory of Wing boats at June 30, using the following cost flow assumptions:

1. Average cost (round cost to nearest whole dollar).

2. FIFO.

3. LIFO.

Show the number of units and the unit costs of each layer comprising the cost of goods sold and ending inventory.