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Inventory valuation using LIFO, FIFO and average method.

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Using Average cost, FIFO and LIFO inventory methods. Please use the following information to answer questions 1-6.

Janet has discovered that selling merchandise is even more profitable than the services her spa was providing. This is especially true since most of her clients are celebrities or other wealthy individuals, who don\'t mind paying top dollar for quality merchandise. Randy\'s Spa Supplies sells plush robes and slippers that Janet\'s customers can purchase and take home after their spa treatment. The most popular item is a silk-lined, 100% plush cotton robe. This merchandise has been selling extremely well at Janet\'s Spa. Janet has decided to carry a significant amount of this inventory item. Since Randy\'s Spa Supplies is still a young company, the amount it charges for the robes varies from order to order. Information is given below for inventory and sales of these units of product in Randy\'s records.

February 1 Beginning inventory balance

   120 units @ $65 per unit

  $  7,800

2/3 purchases

   450 units @ $70 per unit

  $31,500

2/12 purchases

   360 units @ $72 per unit

  $25,920

2/20 purchases

   280 units @ $66 per unit

  $18,480

2/26 purchases

   216 units @ $64 per unit

  $13,824

Goods available for sale

1,426 units

 $ 97,524

Sales

 

1,280 units

On hand (2/28 inventory)

   146 units

 

  1. Assuming the periodic inventory system is in use, what was the Cost of Goods Sold if the Average Cost Method is used? - There is a slight rounding difference
  2. Assuming the periodic inventory system is in use, what is the value of ending inventory if the Average Cost Method is used? There is a slight rounding difference
  3. Assuming the periodic inventory system is in use, what was the Cost of Goods Sold if the LIFO Method is used?
  4. Assuming the periodic inventory system is in use, what is the value of ending inventory if the LIFO Method is used?
  5. Assuming the periodic inventory system is in use, what was the Cost of Goods Sold if the FIFO Method is used?
  6. Assuming the periodic inventory system is in use, what is the value of ending inventory if the FIFO Method is used?

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