Question
Stans Wholesale buys canned tomatoes from canneries and sells them to retail markets. Stans uses the perpetual inventory method so management has the advantage of
Stans Wholesale buys canned tomatoes from canneries and sells them to retail markets. Stans uses the perpetual inventory method so management has the advantage of always having current knowledge of inventory levels. During August 2019, Stans inventory records showed the following:
Cases Unit Price
August 1 Beginning Inventory 4,100 $13.50
August 9 Purchase 950 $16.95
August 13 Sale 1,000 $22.00
Required: Calculate the cost of goods sold for the month of August and the ending inventory on August 31st using the following cost flow alternatives: LIFO, FIFO, and Weighted Average. Calculate unit costs to the nearest cent.
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