Naab Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 78 units were sold.
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
|
May 1 |
Inventory |
30 |
$ 9 |
$ 270 |
|
May15 |
Purchase |
25 |
10 |
250 |
|
May 24 |
Purchase |
40 |
11 |
440 |
|
Total |
95 |
$ 960 |
Instructions
Calculate the ending inventory at May 31 using the (a) FIFO, (b) average cost, and (c) LIFO methods.(For average cost, round the average unit cost to three decimal places.) Prove the amount allocated to cost of goods sold under each method.