Adams Co. started the year with no inventory. During the year, it purchased two identical inventory items at different times. The first purchase cost $950 and the other, $1,250. Adams sold one of the items 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 of
a. FIFO?
b. LIFO?
c. Weighted average?