Natural Candle Sales Company (NCS) began 2018 with cash of $75,000, inventory of $7,200 (400 candles...

Natural Candle Sales Company (NCS) began 2018 with cash of $75,000, inventory of $7,200 (400 candles that cost $18 each), $3,000 of common stock, and $2,500 of retained earnings. The following events occurred during 2018.

1. NCS purchased additional inventory twice during 2018. The first purchase consisted of 1600 candles that cost $20 each, and the second consisted of 2,400 candles that cost $24 each. The purchases were on account.

2. The company sold 4080 candles for cash at a selling price of $40 each.

Required

Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average.

Solutions

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