Credit Company had the following inventory data for the current month.
At the end of the month, there were 15 units on hand.
1. Compute cost of goods sold and ending inventory for each of the following methods:
a. Average cost
b. First-in, first-out (FIFO)
c. Last-in, first-out (LIFO)
2. Which method produces the highest net income? Which method produces the lowest net income?

Question

Credit Company had the following inventory data for the current month.
  At the end of the month, there were 15 units on hand.
1. Compute cost of goods sold and ending inventory for each of the following methods:
a. Average cost
b. First-in, first-out (FIFO)
c. Last-in, first-out (LIFO)
2. Which method produces the highest net income? Which method produces the lowest net income?

Quizplus · Accepted Answer

The Answer of Credit Company had the following inventory data for the current month.
  At the end of the month, there were 15 units on hand.
1. Compute cost of goods sold and ending inventory for each of the following methods:
a. Average cost
b. First-in, first-out (FIFO)
c. Last-in, first-out (LIFO)
2. Which method produces the highest net income? Which method produces the lowest net income?

Credit Company Had the Following Inventory Data for the Current