Problem 1:

Ziad Company had a beginning inventory on January 1 of 330 units of Product 4-18-15 at a cost of $21 per unit. During the year, the following purchases were made.

2,200 units were sold. Ziad Company uses a periodic inventory system.

Determine the cost of goods available for sale.

Calculate average cost per unit

Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average).

Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?

Problem 2:

You are provided with the following information for Najera Inc. for the month ended June 30, 2014. Najera uses the periodic method for inventory.

Calculate cost per unit.

Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost.

Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost.

Problem 3:

Terando Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.

Calculate the average cost per unit at June 1, 6, 11, 14, 21 & 27.

Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO.