Problem 6-03A

Blue Spruce Corp. had a beginning inventory of 100 units of Product RST at a cost of $9 per unit. During the year, purchases were:

Feb. 20		650		units at		$10		Aug. 12		460		units at		$12
May 5		590		units at		$11		Dec. 8		100		units at		$13

Blue Spruce uses a periodic inventory system. Sales totaled 1,510 units.

Determine the cost of goods available for sale.

The cost of goods available for sale

$enter the cost of goods available for sale in dollars

Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.)

Average Cost

$enter an average cost in dollars

SHOW LIST OF ACCOUNTS

Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 150.)

		FIFO		LIFO		AVERAGE-COST
The ending inventory		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
The cost of goods sold		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

SHOW LIST OF ACCOUNTS

Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement? select a method which Average-costFIFOLIFO results in the lowest inventory amount for the balance sheet. select a method which Average-costFIFOLIFO results in the lowest cost of goods sold for the income statement.