(Computing amounts for the GAAP inventory methods—periodic system) Suppose Intel Corporation’s inventory records for a particular computer chip indicate the following at October 31:
|
Oct. 1 |
Beginning inventory |
5 units @ $160 |
= |
$ 800 |
|
8 |
Purchase |
4 units @ 160 |
= |
640 |
|
15 |
Purchase |
11 units @ 170 |
= |
1,870 |
|
26 |
Purchase |
5 units @ 180 |
= |
900 |
The physical count of inventory at October 31 indicates that 8 units of inventory are on hand.
Required
Compute ending inventory and cost of goods sold, using each of the following methods. Round all amounts to the nearest dollar:
1. Specific unit cost, assuming four $160 units
2. Average cost
3. First in, first out and four $170 units are on hand
4. Last in, first out