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. Use the information given in the Excel spreadsheet to determine the value of ending inventory and cost of goods sold at the end of Year 3, under the three cost flow assumptions (LIFO, FIFO, and Average Cost).

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. Use the information given in the Excel spreadsheet to determine the value of ending inventory and cost of goods sold at the end of Year 3, under the three cost flow assumptions (LIFO, FIFO, and Average Cost).

During the month of FebruaryYear 3, HHEC.COM made the following purchases Beginning Inventory, February 1 February 10 Purchase February 21 Purchase February 28 Purchase Total Units Unit Cos Total Cost 90 100 110 200 300 400 100 18,000 30,000 44,000 1,000 104,000 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 UnitsCost Iotal Ending Inventor FIFO -Units Sold: 130 Cost of Goods Sold Units Cost Ending Inventor Average Cost Average Cost - Units Sold: 130 Units Cost