Chapter 6, Problem 6.17AE

LO 2

(Learning Objective 2: Compare ending inventory and cost of goods sold using four methods) Use the data for Griffin Company in E6-16A to answer the following.

Requirements

  1.    Compute cost of goods sold and ending inventory, using each of the following methods.

  a.    Specific identification, with seven $165 units and four $175 units still on hand at the end

  b.    Average cost

  c.    FIFO

  d.    LIFO

  2.    Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?