Solution-Determine cost of goods sold and cost of ending

Determine cost of goods sold and cost of ending inventory

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Reference no: EM132473039

Question - Flint-Mart Centre Inc. began operations on May 1 and uses a perpetual inventory system. During May, the company had the following purchases and sales for one of its products:

Date	Purchases		Sales
Date	Units	Unit Cost	Units	Unit Price
May 1	120	$101
May 3			80	$254
May 8	100	110
May 13			80	278
May 15	60	115
May 20			60	304
May 27			40	328

Required -

1. Determine the cost of goods sold and cost of ending inventory using (1) FIFO and (2) average cost.

2. Which cost formula produces the higher gross profit and net income?

3. Which cost formula produces the higher ending inventory valuation?

4. Which cost formula produces the higher cash flow?

Reference no: EM132473039

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Determine cost of goods sold and cost of ending inventory

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Reference no: EM132473039

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