Chapter 6, Problem 6.33BE

LO 2

(Learning Objective 2: Apply the average, FIFO, and LIFO methods) Sherwood Company’s inventory records for the most recent year contain the following data:

A	B	C
1	Quantity	Unit Cost
2 Beginning inventory	2,000	$ 4.00
3 Purchases during year	18,000	$ 6.00
4

 Sherwood Company sold a total of 19,800 units during the year.

Requirements

  1.    Using the average-cost method, compute the cost of goods sold and ending inventory for the year.

  2.    Using the FIFO method, compute the cost of goods sold and ending inventory for the year.

  3.    Using the LIFO method, compute the cost of goods sold and ending inventory for the year.