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Shawn Company had 188 units in beginning inventory at a total cost of $18,800. The company purchased 376 units at a total cost of $48,880. At the end of the year, Shawn had 141 units in ending inventory.
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.)
Which cost flow method would result in the highest net income?
Which cost flow method would result in inventories approximating current cost in the balance sheet?
Which cost flow method would result in Shawn paying the least taxes in the first year?
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