Reference no: EM133032023

Problem - Inventory Costing Methods - Crandall Distributors uses a perpetual inventory system and has the following data available for inventory, purchases, and sales for a recent year:

Activity	Units	Purchase Price (per unit)	Sale Price (per unit)
Beginning inventory	110	$7.10
Purchase 1, Jan. 18	575	7.20
Sale 1	380		$12.00
Sale 2	225		12.00
Purchase 2, Mar. 10	680	7.50
Sale 3	270		12.00
Sale 4	290		12.50
Purchase 3, Sept. 30	230	7.70
Sale 5	240		12.50

Required -

1. Compute the cost of ending inventory and the cost of goods sold using the specific identification method. Assume the ending inventory is made up of 40 units from beginning inventory, 30 units from Purchase 1, 80 units from Purchase 2, and 40 units from Purchase 3.

2. Compute the cost of ending inventory and cost of goods sold using the FIFO inventory costing method.

3. Compute the cost of ending inventory and cost of goods sold using the LIFO inventory costing method.

4. Compute the cost of ending inventory and cost of goods sold using the average cost inventory costing method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)