Sophia is unsure of how to determine the cost of ending inventory and the cost of goods sold at the end of the year. You explain that one of three cost flow assumptions can be used to determine these amounts. Sophia provides you with the value of beginning inventory and a list of purchases made throughout the year.

HHEC Task 2: Sophia is unsure of how to determine the cost of ending inventory and the cost of goods sold at the end of the year. You explain that one of three cost flow assumptions can be used to determine these amounts. Sophia provides you HAPPY HOME with the value of beginning inventory and a list of purchases made throughout the year. Environmental Cleaning During the month of February Year 3,HHEC.COM made the following purchases Beginning Inventory, February 1 February 10 Purchase February 21 Purchase February 28 Purchase Units 200 300 400 100 1,000 Unit Cost 90 100 1101 120 Total Cost 18,000 30,000 44,000 12,000 104,000 Total At the end of February, there were 870 units on hand. Determine (1) ending inventory; and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average cost). Answer: LIFO - Units Sold: 130 Cost of Goods Sold: Units Cost Total Ending Inventory Units Cost FIFO - Units Sold: 130 Cost of Goods Sold: Units Cost Ending Inventory Units Cost FIFO - Units Sold: 130 Cost of Goods Sold: Units Cost Ending Inventory Units Cost Units Cost Average Cost Average Cost - Units Sold: 130 Cost of Goods Sold: Ending Inventory