Question 1

Lester Company sells many products. Hackenberry is one of its popular items. Below is an analysis of the inventory purchases and sales of Hackenberry for the month of March. Lester Company uses the periodic inventory system.

Purchases Sales

Units Unit Cost Units Selling Price/Unit

3/1 Beginning inventory 100 $40

3/3 Purchase 60 $50

3/4 Sales 70 $80

3/10 Purchase 200 $55

3/16 Sales 80 $90

3/19 Sales 60 $90

3/25 Sales 40 $90

3/30 Purchase 40 $65

Required

Determine ending inventory, cost of goods sold and gross profit under (1) average cost, (2) FIFO, and (3) LIFO. (Show clear computation)