Problem:
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 the infomation, 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?
Note: Please provide through step by step calculations.