The July 2003 inventory records of Mario s Bookstore showed the following:
|
July 1 Beginning inventory |
28,000 |
at $2.00 = $56,000 |
|
|
5 Sold |
4,000 |
||
|
13 Purchased |
6,000 |
at $2.25 = 13,500 |
|
|
17 Sold |
3,000 |
||
|
25 Purchased |
8,000 |
at $2.50 = 20,000 |
|
|
27 Sold. |
5,000 |
$89,500 |
|
1. Using the perpetual inventory method, compute the ending inventory and cost of goods sold balances with (a) FIFO, (b) LIFO, and (c) average cost. Compute unit costs to the nearest cent.
2. Which of the three alternatives is best? Why?