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The following data relate to inventory for the year ended December 31, 2007:
Date
Description
Numberof Units
Cost per Unit
TotalCost
January 1
Beginning inventory
400
$5.00
$ 2,000
March 1
Purchase
1,000
6.00
6,000
August 1
200
7.00
1,400
November 1
7.50
1,500
1,800
$10,900
A physical inventory on December 31, 2007, indicates that 400 units are on hand and that they came from the March 1 purchase.
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
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