The following data relate to inventory for the year ended December 31, 2007. A physical inventory on December 31, 2007, indicates that 600 units are on hand and that they came from the July 1 purchase.
|
Date
|
Description
|
Numberof Units
|
|
Cost per Unit
|
|
TotalCost
|
|
January 1
|
Beginning inventory
|
1,000
|
|
$4.00
|
|
$ 4,000
|
|
February 20
|
Purchase
|
800
|
|
4.50
|
|
3,600
|
|
April 1
|
Purchase
|
900
|
|
4.75
|
|
4,275
|
|
July 1
|
Purchase
|
700
|
|
5.00
|
|
3,500
|
|
October 22
|
Purchase
|
500
|
|
4.90
|
|
2,450
|
|
December 10
|
Purchase
|
500
|
|
5.00
|
|
2,500
|
|
|
|
4,400
|
|
|
|
$20,325
|
Required:
Compute the cost of goods sold for the year ended December 31, 2007, and the ending inventory under the following cost assumptions:
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Average cost (weighted average)
d. Specific identification