The inventory of Product PIT and data on purchases and sales for a two-month period follow. The company closes its books at the end of each month. It uses the periodic inventory system.
Apr. 1 Beginning inventory 50 units @ $204
10 Purchase 100 units @ $220
17 Sale 90 units
30 Ending inventory 60 units
May 2 Purchase 100 units @ $216
14 Purchase 50 units @ $224
22 Purchase 60 units @ $234
30 Sale 200 units
31 Ending inventory 70 units
Required
1. Compute the cost of ending inventory of Product PIT on April 30 and May 31using the average-cost method. In addition, determine cost of goods sold for April and May. Round unit costs to cents and totals to dollars.
2. Compute the cost of the ending inventory on April 30 and May 31 using the FIFO method. In addition, determine cost of goods sold for April and May. 3. Compute the cost of the ending inventory on April 30 and May 31 using the LIFO method. In addition, determine cost of goods sold for April and May.
4. Do the cash flows from operations for April and May differ depending on which inventory costing method is used—average-cost, FIFO, or LIFO? Explain.