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Spice Co. started the year with no inventory. During the year, it purchased two identical inventory items. The inventory was purchased at different times. The first purchase cost $3,600 and the other, $4,200. One of the items was sold during the year.
Required:
Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory on the year end financial statements, assuming use ofa. FIFO? b. LIFO? c. Weighted average?
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From its financial statement notes, identify the titles and amounts of its inventory components.
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