Inventory Costing Methods
On June 1, Welding Products Company had a beginning inventory of 210 cases of welding rods that had been purchased for $88 per case. Welding Products purchased 1,150 cases at a cost of $95 per case on June 3. On June 19, the company purchased another 950 cases at a cost of $112 per case. Sales data for the welding rods are:
Welding Products uses a perpetual inventory system, and the sales price of the welding rods was $130 per case.
Required:
1. Compute the cost of ending inventory and cost of goods sold using the FIFO method.
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Cost of ending inventory
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$
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Cost of goods sold
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$
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2. Compute the cost of ending inventory and cost of goods sold using the LIFO method.
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Cost of ending inventory
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$
|
|
Cost of goods sold
|
$
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3. Compute the cost of ending inventory and cost of goods sold using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
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Cost of ending inventory
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$
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|
Cost of goods sold
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$
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