In: Accounting
Whispering Winds Corp. Inc. had a beginning inventory of 95 units of Product RST at a cost of $7 per unit. During the year, purchases were:
Feb. 20 610 units at $8
Aug. 12 395 units at $10
May 5 480 units at $9
Dec. 8 100 units at $11
Whispering Winds Corp. uses a periodic inventory system. Sales totaled 1,535 units.
Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods