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Eddings Company had a beginning inventory of 400 units of Product XNA at a cost of $8.00 per unit. During the year, purchases were:
Feb. 20 600 units at $9 Aug. 12 300 units at $11
May 5 500 units at $10 Dec. 8 200 units at $12
Eddings Company uses a periodic inventory system. Sales totaled 1,500 units.
Determine the cost of goods available for sale.
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). (Round the unit cost in the average cost method to 2 decimal places, e.g. 2.25. Round final answers to 0 decimal places, e.g. 125.)
FIFO LIFO Average Cost
Ending Inventory $ $ $
Cost of Goods Sold $ $ $
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?
Lowest inventory amount Average CostLIFOFIFO
Lowest cost of goods sold LIFOAverage CostFIFO
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