Milo company had a beginning inventory of 400 units of product kimbo
Milo Company had a beginning inventory of 400 units of Product Kimbo at a cost of $8 per unit. During the year, purchases were:
Feb. 20 300 @ $9 Aug. 12600 @ $11
May 5 500 @ $10 Dec. 8200 @ $12
Milo Company uses a periodic inventory system. Sales totaled 1,500 units.
A. Determine the cost of goods available for sale.
B. Calculate the weighted-average unit cost.
C. 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)
D. Which cost flow method results in (1) the lowest inventory amount for the balance sheet, and (2) the lowest cost of goods sold for the income statement?