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Suppose a company ABC Limited has the following purchase history in 2021: Units Price/Unit First Quarter 1500 40 Second Quarter 2000 41 Third Quarter 2500

Suppose a company ABC Limited has the following purchase history in 2021:

Units Price/Unit

First Quarter 1500 40

Second Quarter 2000 41

Third Quarter 2500 43

Fourth Quarter 2000 45

The company was able to sell 6500 units at $50 per unit. Based on the information, answer the following.

a) Calculate the cost of goods sold under the FIFO, LIFO, and the average cost method. What do you observe? (Hint: which one is highest in the middle, and the lowest)

b) Calculate the value of the remaining inventory under the FIFO, LIFO, and the average cost method. What do you oberserve?

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