Adams Co. started the year with no inventory. During the year, it purchased two identical inventory items at different times. The first purchase cost $1,290 and the other, $1,590. 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 following cost flow assumptions:
a. FIFO?
b. LIFO?
c. Weighted average?