Reference no: EM132756657

Speed World Cycles sells high-performance motorcycles and motocross racers. One of Speed World's most popular models is the Kazomma 900 dirt bike. During the current year, Speed World purchased eight of these cycles at the following costs:

                                                                                                                 Units           Unit                     Total

                                                                                     Purchase       Purchased Cost        Cost
July 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2                  $4,950           $ 9,900
July 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3                     5,000               15,000
Aug. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3                    5,100               15,300
8 $40,200

• On July 28, Speed World sold four Kazomma 900 dirt bikes to the Vince Wilson racing team. The remaining four bikes remained in inventory at September 30, the end of Speed World's fiscal year.

• Assume that Speed World uses a perpetual inventory system. (See the data given above.)

Instructions

Problem a. Compute the cost of goods sold relating to the sale on July 28 and the ending inventory of Kazomma 900 dirt bikes at September 30, using the following cost flow assumptions:

1. Average cost.
2. FIFO.
3. LIFO.

Show the number of units and the unit costs of each layer comprising the cost of goods sold and ending inventory