The following data pertains to smart investments Accounting software packages in the inventory of computer program smart outlets.
Inventory Jan 1 170 units at $107.00
Purchases:
- May 10 110 units at$105.00
- Aug. 18 180 units at 104.00
- Oct. 1 170 units at $ 105.00
Inventory Dec.31 175 units.
Determine the cost of the inventory on dec 31 and the cost of goods sold for the year ending in that date under each of the following caluation methods:
A. FIFO
B. LIFO
C. average cost.
When using average cost method compute the unit cost to the nearest cent.
Assume that the replacement cost of each unit on Dec. 31 is $105.25. Using the lower cost or market rule, find the inventory amount under each of the methods given in instruction 1.