Chapter 7, Problem 8AP

1.

To determine

Compute the cost of goods sold and the cost of ending inventory under perpetual inventory system using average-cost method.

2.

To determine

Compute the cost of goods sold and the cost of ending inventory under perpetual inventory system using FIFO method.

3.

To determine

Compute the cost of goods sold and the cost of ending inventory under perpetual inventory system using LIFO method.

4.

To determine

Analyze the balance sheet value of inventory if the company has been facing rising prices for many years and the effect on the inventory turnover ratio.