Question
PQR Corporation had an inventory of widgets on hand on January 1, 2016 which cost $10 per widget. During 2016 PQR increased its widget inventory
PQR Corporation had an inventory of widgets on hand on January 1, 2016 which cost $10 per widget. During 2016 PQR increased its widget inventory through two purchases. On February 1, PQR purchased another 1000 widgets at a cost of $13 per widget; and on September 1, 2016 it purchased another 1000 widgets at 15 per widget. There was only one sale of widgets during 2016. It occurred on December 11, 2016 when 1500 widgets were sold.
What was the cost of goods sold and closing inventory value for the widgets at December 31, 2016, the end of PQRs fiscal year using A) the average cost method, B) the FIFO cost method and C) the LIFO cost method?
Opening and ending inventory quantity are not provided.
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