Problem III

Douglas Company uses the periodic inventory method and had the following inventory information available:

Units Unit CostTotal Cost

1/1Beginning Inventory200$5$ 1,000

1/20Purchase400$62,400

7/25Purchase600$74,200

10/20Purchase800$86,400

2,000$14,000

A physical count of inventory on December 31 revealed that there were 950 units on hand.

Instructions

Answer the following independent questions and show computations supporting your answers.

1.Assume that the company uses the FIFO method.

a.The value of the Cost of Goods Sold at December 31 is $__________.

b.The value of the Ending Inventory at December 31 is $___________.

2.Assume that the company uses the LIFO method.

a.The value of the Cost of Goods Sold on December 31 is $__________.

b.The value of the Ending Inventory at December 31 is $___________.

3.Assume that the company uses the Weighted Average method.

a.The value of the Cost of Goods Sold on December 31 is $__________.

b.The value of the Ending Inventory at December 31 is $___________.