During April, Leary Company sold 1000 units of Product Q. Its beginning inventory and purchases during the month are shown below. (Assume the periodic inventory system is used.)
April 1
Beginning inventory
200 units @ $1
April 5
Purchases
200 units @ $2
April 10
Purchases
200 units @ $3
April 15
Purchases
200 units @ $4
April 20
Purchase
200 units @ $5
April 25
Purchase
200 units @ $6
Compute the cost of the ending inventory under each of three methods: (a) average cost, (b) LIFO, and (c) FIFO. Explain how you calculated each answer.
Excel spreadsheet format:
Journal
Date/Description/Debit/Credit
Account Name Balance
Date/Item/Debit/Credit Debit/Credit