This paper circulates around the core theme of Which costing method gives the highest ending inventory? The highest cost of goods sold? Why? How do the average-cost values for ending inventory and cost of goods sold relate to ending inventory and cost of goods sold for FIFO and LIFO? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
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Instructions
(a) Compute the cost of the ending inventory and the cost of goods sold under
(1) FIFO,
(2) LIFO, and
(3) average-cost.
(b) Which costing method gives the highest ending inventory? The highest cost of goods sold? Why?
(c)
How do the average-cost values for ending inventory and cost of goods
sold relate to ending inventory and cost of goods sold for FIFO and
LIFO?
(d) Explain why the average cost is not $6.
