Problem 6-3A

Sekhon Company had a beginning inventory on January 1 of 189 units of Product 4-18-15 at a cost of $21 per unit. During the year, the following purchases were made.

Mar. 15

472 units

at

$22

Sept. 4

389 units

at

$24

July 20

295 units

at

$23

Dec. 2

118 units

at

$25

1,180 units were sold. Sekhon Company uses a periodic inventory system.

Determine the cost of goods available for sale.

The cost of goods available for sale

$

Calculate average cost per unit. (Round answer to 3 decimal places, e.g. 1.250.)

Average cost per unit

$

Determine (1) the ending inventory, and (2) 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. 1,250.)

		FIFO		LIFO		AVERAGE-COST
The ending inventory		$		$		$
The cost of goods sold		$		$		$

Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?

(1)		results in the highest inventory amount, $ .
(2)		produces the highest cost of goods sold, $ .