The following data relate to inventory for the year ended December 31, 2007:
|
Date
|
Description
|
Numberof Units
|
|
Cost per Unit
|
|
TotalCost
|
|
January 1
|
Beginning inventory
|
400
|
|
$5.00
|
|
$ 2,000
|
|
March 1
|
Purchase
|
1,000
|
|
6.00
|
|
6,000
|
|
August 1
|
Purchase
|
200
|
|
7.00
|
|
1,400
|
|
November 1
|
Purchase
|
200
|
|
7.50
|
|
1,500
|
|
|
|
1,800
|
|
|
|
$10,900
|
A physical inventory on December 31, 2007, indicates that 400 units are on hand and that they came from the March 1 purchase.
Required:
Compute the cost of goods sold for the year ended December 31, 2007, and the ending inventory under the following cost assumptions:
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Average cost (weighted average)
d. Specific identification