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Problem - Vaughn Company had a beginning inventory on January 1 of 200 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made.
Mar. 15 430 units at $22
July 20220 units at $24
Sept. 4 300 units at $26
Dec. 2 100 units at $29
1,030 units were sold. Vaughn Company uses a periodic inventory system.
Required -
1. Determine the cost of goods available for sale?
2. Calculate average cost per unit?
3. Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost)?
4. Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?
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