Stan s Wholesale buys canned tomatoes from canneries and sells them to retail markets. During August 2003, Stan s inventory records showed the following:
|
August 1 Beginning inventory. |
Cases |
Price |
|
4 Purchase |
4,100 |
$10.50 |
|
9 Sale |
1,500 |
11.00 |
|
13 Purchase |
950 |
$19.95 |
|
19 Sale |
1,000 |
11.00 |
|
26 Purchase |
1,450 |
$19.95 |
|
30 Sale |
1,700 |
11.50 |
|
1,900 |
$19.95 |
Even though it requires more computational effort, Stan s uses the perpetual inventory method because management feels that the advantage of always having current knowledge of inventory levels justifies the extra cost.
Calculate the cost of goods sold and ending inventory using the following cost flow alternatives. (Calculate unit costs to the nearest cent.)
1. FIFO
2. LIFO
3. Average cost