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Suggs Company sells coffee makers used in business offices. Its beginning inventory of coffee makers was 400 units at $50 per unit. During the year, Suggs made two batch purchases of coffee makers. The first was a 500 unit purchase at $55 per unit; the second was a 600 unit purchase at $58 per unit. During the period, Suggs sold 1,200 coffee makers.
Required:
Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Suggs usesa. FIFO. b. LIFO. c. Weighted average.
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