Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost – Star Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2012, the accounting records provided the following information for product 1:
|
Units |
Unit Cost |
||
|
Inventory, December 31, 2011 |
2,000 |
$5 |
|
|
For the year 2012: |
|||
|
Purchase, March 21 |
5,000 |
7 |
|
|
Purchase, August 1 |
3,000 |
8 |
|
|
Inventory, December 31, 2012 |
4,000 |
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Required:
Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.