Question
Calculate the cost of goods sold and ending inventory of the Summertime Corporation, using the FIFO and LIFO methods, using the following information:
Beginning Inventory 5 units @ $2
January 5th 7 units @ $3
January 15th 9 units @ $5
Assume 8 units left in ending inventory.
Show all work and label the Cost of Goods Sold and Ending Inventory calculations well, labeling the method used for each calculation. There should be 4 final answers, worth 5 pts each. Thanks!
Expand the Word Document for your answers to fit or use separate sheets.
2. During periods of rising prices, which method will always yield the higher cost of goods sold and explain, in detail, why. Also, why would some managers want to use this method?
3. Which method will always yield the more current ending inventory? Explain in detail, why. Explain what ‘the more current ending inventory’ means, too.