Ziad Company had a beginning inventory on January 1 of 183 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made.
| Mar. 15 |
|
488 units |
|
at |
|
$24 |
|
Sept. 4 |
|
427 units |
|
at |
|
$27 |
| July 20 |
|
305 units |
|
at |
|
$25 |
|
Dec. 2 |
|
122 units |
|
at |
|
$30 |
Determine the cost of goods available for sale.
Calculate average cost per unit.
Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods.
Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?