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Allocating product cost between cost of goods sold and ending inventory: multiple purchases
Rainey Company sells coffee makers used in business offices. Its beginning inventory of coffee makers was 200 units at $25 per unit. During the year, Rainey made two batch purchases of coffee makers. The first was a 300-unit purchase at $30 per unit; the second was a 250-unit purchase at $35 per unit. During the period, Rainey sold 700 coffee makers.
Required
Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Rainey uses
a. FIFO.
b. LIFO.
c. Weighted average.
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