Use the data for Nashville Sales, Inc., in E6-25B to answer the following.

In E6-25B, Nashville Sales, Inc.’s inventory records for a particular development program show the following at August 31:

Requirements
1. Compute cost of goods sold and ending inventory using each of the following methods:
a. Specific unit cost, with five $170 units and six $180 units still on hand at the end
b. Average cost
c. FIFO
d. LIFO
2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goodssold?

Transcribed Image Text:

Aug 1 Beginning inventory Aug 15 Purchasc Aug 26 Purchase. 6 units $170 -$1,020 8 units 172 -1,376 14 units 1802,520 ..