Reference no: EM132674120

Evans Company had the following transactions in the month of March involving purchases and sales of inventory:

March 1: Beginning Inventory 65 Units @ $60/unit

March 5: Purchase of 210 Units @ $64/unit

March 9: Sale of 200 Units @ $90/unit

March 18: Purchase of 65 Units @ $65/unit

March 25: Purchase of 95 Units @ $70/unit

March 29: Sale of 75 Units @ $100/unit

Required:

Problem 1: Calculate the cost of goods sold under the FIFO, LIFO, and Weighted Average methods.

Problem 2: Calculate cost of goods sold using the Specific Identification method. Assume the March 9 sale consisted of 40 units form beginning inventory and 160 units from the March 5 purchase. Assume the March 29 sale consisted of 20 units from the March 18 purchase and 55 units from the March 25 purchase.

Problem 3: Compute the gross profit earned under each of the four inventory valuation methods.