Chapter 6A, Problem 3E

(Compute amounts for the GAAP inventory methods—periodic system) Suppose Synthetix Corporation’s inventory records for a particular computer chip indicate the following at October 31:

Oct 1	Beginning inventory ....................	4 units @ $60 = $240
8	Purchase .......................................	3 units @ $60 = 180
15	Purchase .......................................	12 units @ $70 = 840
26	Purchase .......................................	1 units @ $80 = 80

  The physical count of inventory at October 31 indicates that five units of inventory are on hand.

Requirements

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

  1.    Specific unit cost, assuming three $60 units and two $70 units are on hand

  2.    Average cost (round average unit cost to the nearest cent)

  3.    First-in, first-out

  4.    Last-in, first-out