Periodic Inventories:
Olsen Company uses the periodic inventory method and had the following inventory information available for the month of November.
Date Transaction Units Unit Cost
11/1 Beginning inventory 400 $3
11/5 Purchase No. 1 600 $5
11/12 Sale No. 1 (300)
11/18 Purchase No. 2 400 $6
11/25 Sale No. 2 (600)
Answer the following independent questions and show computations supporting your answers.
1. Assume that the company uses the average cost method. What is the dollar value of the ending inventory on November 30?
2. Assume that the company uses the LIFO inventory method. What is the dollar value of the cost of goods sold during November?
3. Assume that the company uses the FIFO inventory method. The dollar value of the ending inventory on November 30 is: