Question 1

Brake Company utilizes the perpetual inventory method. Inventory information for Part # AB124 revealed the following for the month of May:

May 1	Balance 245 units @ $8	May 10	Sold 210 @ $23.50
May 11	Purchased 800 units @ $9.50	May 16	Sold 300 @ $23
May 20	Purchased 770 units @ $11	May 26	Sold 350 @ $24.50

Required: Determine the value of ending inventory, cost of goods sold and gross profit under each of the following methods:

(a) LIFO

(b) FIFO

(c) Average Cost