Problem 2, p. 294

The inventory of Wood4Fun and data on purchases and sales for a two-month period follow. The company closes its books at the end of each month. It uses the periodic inventory system.

Apr. 1 Beginning inventory 50 units @ $204

10 Purchase 100 units @ $220

17 Sale 90 units

30 Ending inventory 60 units

May 2 Purchase 100 units @ $216

14 Purchase 50 units @ $224

22 Purchase 60 units @ $234

30 Sale 200 units

31 Ending Inventory 70 units

1. Compute the cost of ending inventory of Wood4Fun on April 30 and May 31 using the average-cost method. In addition, determine the cost of goods sold for April and May. (Round to nearest cent.)
2. Compute the cost of the ending inventory on April 30 and May 31 using the FIFO method. In addition, determine the cost of goods sold for April and May.
3. Compute the cost of the ending inventory on April 30 and May 31 using the LIFO method. In addition, determine the cost of goods sold for April and May.
4. Do the cash flows from operations for April and May differ depending on which inventory costing method is used---average cost, FIFO, LIFO? Explain