Milo Company had a beginning inventory of 400 units of Product Kimbo at a cost of $8 per unit. During the year, purchases were:
|
20-Feb 300 |
@ |
$9 |
|
12-Aug |
600 |
@ $11 |
|
5-May 500 |
@ |
$10 |
|
8-Dec 200 |
@ |
$12 |
Milo Company uses a periodic inventory system. Sales totaled 1,500 units.
Instructions:
(a) Determine the cost of goods available for sale.
(b) Calculate the weighted-average unit cost. (Round answer to 2 decimal places, e.g. $2.25.)
(c) Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. $2,120.)
(d) Which cost flow method results in (1) the lowest inventory amount for the balance sheet, and (2) the lowest cost of goods sold for the income statement?