Inventory by Three Methods; Cost of Goods Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 23 units at $1,800 each June 9 Purchase 30 units at $1,950 each July 28 Purchase 14 units at $2,040 each Nov. 1 Purchase 17 units at $2,100 each There are 18 units of the item in the physical inventory at December 31. Determine the cost of ending inventory and the cost of goods sold by three methods, presenting your answers in the following form: Round your final answers to the nearest dollar. Cost Inventory Method Ending Inventory Cost of Goods Sold a. First-in, first-out method b. Last-in, first-out method 32,400 c. Weighted average Feedback Check My Work a. In the FIFO method, the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price. To compute the cost of goods sold, deduct the ending inventory value from the sales amount. b. In the LIFO method, the last units purchased are assumed to be the first to be sold. Therefore, ending inventory costs are calculated by taking the number of items remaining in the physical inventory times the earliest purchase costs. To compute the cost of goods sold, deduct the ending inventory value from the sales amount. c. In the weighted average cost method, the average cost of all available units purchased is applied to the number of units sold and in ending inventory. Therefore, you must first obtain a unit cost by dividing the total cost of all units available for sale by the number of units available for sale. Then, multiply the number of items remaining in the physical inventory times this unit cost. To compute the cost of goods sold, deduct the ending inventory value from the sales amount