Ziad Company had a beginning inventory on January 1 of 150 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made.

1,000 units were sold. Ziad Company uses a periodic inventory system.

Mar. 15	400 units at $23	Sept. 4	350 units at $26
20-Jul	250 units at $24	Dec. 2	100 units at $29

A. Determine the cost of goods available for sale.

B. Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods.

C. Which cost flow method results in (1) the lowest inventory amount for the balance sheet, and (2) the lowest cost of goods sold for the income statement?

(a)	Page 317
COST OF GOODS AVAILABLE FOR SALE
									Unit		Total
Date	Explanation					Units			Cost		Cost
(b)
FIFO
(1) Ending Inventory							(2) Cost of Goods Sold
			Unit		Total
Date	Units	x	Cost	=	Cost
Proof of Cost of Goods Sold
			Unit		Total
Date	Units	x	Cost	=	Cost
LIFO
		(1) Ending Inventory					(2) Cost of Goods Sold
			Unit		Total
Date	Units	x	Cost	=	Cost

(b) (Continued) and (c)
LIFO
(b)	Proof of Cost of Goods Sold
						Unit			Total
			Date	Units	x	Cost		=	Cost
AVERAGE-COST
	(1)	Ending Inventory				(2) Cost of Goods Sold
		Unit		Total
Units	x	Cost	=	Cost
(c) (1)
(2)