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    INVENTORY types of inventory valuation.
    Elston Company had a beginning inventory of 200 units at a cost of $12 per unit on August 1. During the month, the following purchases and sales were made.

    Purchases Sales
    August 4 250 units at $13 August 7 150 units
    August 15 350 units at $15 August 11 100 units
    August 28 200 units at $14 August 17 250 units
    August 24 200 units

    Instructions
    Determine ending inventory and cost of goods sold under (a) average cost, (b) FIFO, and (c) LIFO.

    (a) Average cost:
    Ending inventory = $____________; cost of goods sold = $_____________.

    (b) FIFO:
    Ending inventory = $_____________; cost of goods sold = $____________.

    (c) LIFO:
    Ending inventory = $_____________; cost of goods sold = $____________.

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    Solution Preview

    INVENTORY types of inventory valuation.
    Elston Company had a beginning inventory of 200 units at a cost of $12 per unit on August 1. During the month, the following purchases and sales were made.

    Purchases Sales
    August 4 250 units at $13 August 7 150 units
    August 15 350 units at $15 August 11 100 units
    August 28 200 units at $14 August 17 250 units
    August 24 200 units

    Elston uses a periodic inventory system.

    Instructions
    Determine ending inventory and cost of goods sold under (a) average cost, (b) FIFO, and (c) LIFO.

    Purchases Sales Balance
    August 1 200 units at $12 200 units
    August 4 250 units at $13 450 units
    August 7 150 units 300 units
    August 11 100 units 200 units
    August 15 350 units at $15 550 units
    August 17 250 units 300 units
    August 24 200 units 100 units
    August 28 200 units at $14 300 ...

    Solution Summary

    This solution is comprised of a detailed explanation to determine ending inventory and cost of goods sold under (a) average cost, (b) FIFO, and (c) LIFO.

    $2.49

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