A Sekhon Company had a beginning inventory on January 1 of 165 units of Product 4-18-15 at a cost of $18 per unit. During the year, the following purchases were made.
Mar. 15 412 units at $21 Sept. 4 340 units at $26
July 20 258 units at $22 Dec. 2 103 units at $30
1,030 units were sold. Sekhon Company uses a periodic inventory system.
Determine the cost of goods available for sale.
The cost of goods available for sale $___________
Calculate average cost per unit. (Round answer to 3 decimal places, e.g. 1.250.)
Average cost per unit $_____________
Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 1,250.)
FIFO LIFO AVERAGE-COST
The ending inventory $ $ $
The cost of goods sold $ $ $
Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?
(1) __________ results in the highest inventory amount, $___________.
(2)__________ produces the highest cost of goods sold, $__________.