Question 1: Brake Company utilizes the perpetual inventory method. Inventory information for Part # AB124 revealed the following for the month of May:
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May 1
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Balance 245 units @ $8
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May 10
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Sold 210 @ $23.50
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May 11
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Purchased 800 units @ $9.50
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May 16
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Sold 300 @ $23
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May 20
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Purchased 770 units @ $11
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May 26
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Sold 350 @ $24.50
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Required: Determine the value of ending inventory, cost of goods sold and gross profit under each of the following methods:
(a) LIFO
(b) FIFO
(c) Average Cost