Reference no: EM132471703

Problem - The following information is available for Gumbel Company:

Beginning inventory 600 units at $4

First purchase 900 units at $5

Second purchase 500 units at $6

Assume that Gumbel uses a periodic inventory system and that there are 700 units left at the end of the month.

Required -

1. Compute the cost of the ending inventory under the

(a) FIFO method.

(b) LIFO method.

2. Using the information above, compute each of the following under the average cost method:

(a) Cost of the ending inventory.

(b) Cost of goods sold.