Inventory Balance and COGS Canfield Trading shows the beginning inventory of a particular product, and the...

Inventory Balance and COGS

Canfield Trading shows the beginning inventory of a particular product, and the purchases during the current year, as follows:

Jan.	1	Beginning Inventory	35	units @	$6.50	=	$227.50
Apr.	8	Purchase	40	units @	$6.40	=	$256.00
Aug.	11	Purchase	30	units @	$5.90	=	$177.00
Dec.	23	Purchase	35	units @	$5.50	=	$192.50
	Total available for Sale		140	units			$853.00

During the year Canfield Trading sold in total 95 units of this product.

Instruction: (show your calculations and round to 2 decimal places)

Determine the cost of the year-End Inventory and the Cost of Goods Sold for this product under each of the following Methods of Inventory Valuation:

	Inventory at Dec. 31st	Cost of Goods Sold
Average Cost
First-in, First-out
Last-in, First-out

If Canfield Trading wants to achieve a high profit end of the year, which method should they choose? Explain fully your answer.

Expert Solution

ekkarill92 answered 2 years ago

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