IV. Inventory Flow Assumptions: Johnson Company has beginning inventory on January 1 of 1000 units at $5.00 each. They make two purchases during the year: 4,000 units at $6.00 and 5,000 units at $7.00. The ending inventory for the year was 3,000 units. What was the ending inventory cost and the COGS under FIFO, LIFO and Average Cost method? FIFO: COGS: 1000* 5+4000*6+5000* 7=43000 Ending inventory: 3000* 7=21000 LIFO: COGS: 5000* 7+2000*6=47000 Ending inventory: 2000* 6+1000*5=17000 AVERAGE COST: AVE=64000/1000=6.4 COGS: 6.4*7000=44800 Ending inventory: 6.4*3000=192000