Ending inventory under the following cost assumptions

Reference no: EM131002008

The following data relate to inventory for the year ended December 31, 2007:

Date	Description	Numberof Units	Cost per Unit	TotalCost
January 1	Beginning inventory	400	$5.00	$ 2,000
March 1	Purchase	1,000	6.00	6,000
August 1	Purchase	200	7.00	1,400
November 1	Purchase	200	7.50	1,500
		1,800		$10,900

A physical inventory on December 31, 2007, indicates that 400 units are on hand and that they came from the March 1 purchase.

Required:

Compute the cost of goods sold for the year ended December 31, 2007, and the ending inventory under the following cost assumptions:

a. First-in, first-out (FIFO)

b. Last-in, first-out (LIFO)

c. Average cost (weighted average)

d. Specific identification

Reference no: EM131002008

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