Sandvik Mining uses a periodic inventory system. One of the company’s products is a special equipment for the oil drilling rig. The inventory quantities, purchases and sales of this equipment for the...

Sandvik Mining uses a periodic inventory system. One of the company’s products is a special equipment for the oil drilling rig. The inventory quantities, purchases and sales of this equipment for the most recent year are as follows:

Instructions

1. Using the periodic costing procedures, compute the cost of December 31 inventory and the cost of goods sold for the year under each of the following cost assumptions:

-First-in, first-out

-Last-in, first-out

-Average cost (round to the nearest dollar, except unit cost)

Extracted text: Number of units Cost per unit Total Cost Inventory, Jan. 1 $143 3 146 22 Feb. 1 purchase 34 145 4 930 Mar. 1 purchase 45 149 6 705 Apr. 1 purchase 9 152 1368 Goods available for sale 110 16 149 Jun. 1 sale 96 Sept. 1 purchase 33 160 5 280 Inventory, Dec. 31 47