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Ken Tuckie Inc. had a beginning inventory on January 1 of 100 units of Slatherbuns at a cost of $26 per unit. During the year, the following purchases were made:
Mar. 15300 units at $28Sept. 4300 units at $32
July 20200 units at $30Dec. 2100 units at $36
700 units were sold. Ken Tuckie uses a periodic inventory system.
Instructions
(a) Determine the total cost of goods available for sale.
(b) Determine (1) the value of ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average cost).
(c) Which cost flow method results in (1) the most money available to invest in the business? Which method has the lowest inventory amount for the balance sheet?
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