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The Nevens Company use a Periodic Inventory System. During November, the following transactions occurred. November 1st, balance 500 units at $3.50. November 8th, sale 350 units. November 13th Purchase 300 units at $4.00. November 21st, purchase 200 units at $5.00. November 28th sale 150 units. Compute the cost of goods sold for FIFO , LIFO and Average cost.
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Management has studied the problem and it appears that beginning inventories may be the cause of the unmatched information. The reason for this is that the inventories have a different financial base because of the severe inflation.
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