Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 130 units at $60 per unit.

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 130 units at $60 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 146-unit purchase at $68 per unit; the second was a 224-unit purchase at $72 per unit. During the period, it sold 292 chairs.

 

Required

Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses

a.

FIFO:

b. LIFO:

c. Weighted average:

 

 

Explanation:

CORTEZ COMPANY Inventory Purchases
Beginning inventory	130	@	$60	=	$7,800
First purchase	146	@	68	=	9,928
Second purchase	224	@	72	=	16,128
Goods available for sale	500				$33,856

c.
Total Cost	÷	Total Units	=	Cost per Unit
$ 33,856	÷	500	=	$ 68