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In its first month of operations, Sheridan Company made three purchases of merchandise in the following sequence: 200 units at $12; 250 units at $11; and 300 units at $10. There are 460 units on hand at the end of the period. Sheridan uses a periodic inventory system.
Problem 1: Calculate the cost of the ending inventory and cost of goods sold under FIFO.
Problem 2: Calculate the cost of the ending inventory and cost of goods sold under weighted average. (Round weighted average cost per unit to two decimals places e.g. 52.75 and final answers to 0 decimal places e.g. 5,275.)
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During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is:
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