Compute the cost of goods sold for the year

Reference no: EM131002055

The following data relate to inventory for the year ended December 31, 2007. A physical inventory on December 31, 2007, indicates that 600 units are on hand and that they came from the July 1 purchase.

Date	Description	Numberof Units	Cost per Unit	TotalCost
January 1	Beginning inventory	1,000	$4.00	$ 4,000
February 20	Purchase	800	4.50	3,600
April 1	Purchase	900	4.75	4,275
July 1	Purchase	700	5.00	3,500
October 22	Purchase	500	4.90	2,450
December 10	Purchase	500	5.00	2,500
		4,400		$20,325

Required:

Compute the cost of goods sold for the year ended December 31, 2007, and the ending inventory under the following cost assumptions:

a. First-in, first-out (FIFO)

b. Last-in, first-out (LIFO)

c. Average cost (weighted average)

d. Specific identification

Reference no: EM131002055

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