The Alpenrose Milk Company uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of March, 2009:
March 1 - Inventory on hand - 3,000 units; cost $8.00 each.
March 8 - Purchased 5,000 units for $8.40 each.
March 14 - Sold 4,000 units for $14.00 each.
March 18 - Purchased 6,000 units for $8.20 each.
March 25 - Sold 7,000 units for $14.00 each.
March 31 - Inventory on hand - 3,000 units.
Required:
Determine the inventory balance Alpenrose would report on its March 31, 2009, balance sheet and the cost of goods sold it would report on its March, 2009, income statement using each of the following cost flow methods:
1. First-in, first-out (FIFO)
2. Last-in, first-out (LIFO)
3. Average cost