The following data pertains to Efficient Market Investment software packages in the inventory of the Investment Software division of Efficient Market Investment Outlets:

Inventory, January 1	180	units at $109
Purchases:
May 10	120	units at $107
August 18	190	units at $106
October 1	180	units at $107
Inventory, December 31	187	units

Answer each of the questions:

1. 1(a). Determine the cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the FIFO method.

2. 1(b). Determine the cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the LIFO method.

3. 1(c). Determine the unit cost, cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the average cost method.

4. 2. Assume that the replacement cost of each unit on December 31 is $107.25. Using the lower of cost or market rule, find the inventory amount under each of the methods given in 1.

Analyze: What is the difference between the cost and market value of the inventory using the LIFO method?

Complete this question by entering your answers in the tabs below.

• Req 1A
• Req 1B
• Req 1C
• Req 2
• Analyze

Determine the cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the FIFO method.

FIFO	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	Number of units	Unit cost	Total cost	Number of units	Unit cost	Total cost	Number of units	Unit cost	Total cost
Beginning Inventory, January 1
Purchases:
May-10
Aug-18
Oct-01
Total