Problem
Stewart Company sells a single product for $2.00 per unit and uses a periodic inventory system. The following data are available this year.
Date Transaction # of units Unit Cost
1/1/99 Beginning inventory 500 $1.00
2/5/99 Purchases 350 $1.10
4/12/99 Sale 550
7/17/99 Sale 200
9/23/99 Purchase 400
11/5/99 Sale 300 $1.30
(a) Compute cost of goods sold using weighted average cost method.
(b) Compute the dollar amount of ending inventory assuming the FIFO cost method.
(c) Compute gross margin assuming the LIFO cost method.