Nation Sporting Goods started April with an inventory of 8 sets of golf...
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Nation Sporting Goods started April with an inventory of 8 sets of golf clubs that cost a total of $1,192. During April, Nation purchased 20 sets of clubs for $3,180. At the end of the month, Nation had seven sets of golf clubs on hand. The store manager must select an inventory costing method, and he asks you to tell him both cost of goods sold and ending inventory under these three accounting methods, assuming the periodic inventory system is used: 1a. Weighted average cost 1b. FIFO 2. If the store manager wants the most current cost for ending inventory, which method should he choose? Determine the cost of goods sold and ending inventory amounts under the two methods. (Round your interim calculations to the nearest cent. Round your final answers to the nearest dollar.) 1a. 1b. Average Cost FIFO Cost Cost of goods sold Ending inventory 2. If the store manager wants the most current cost for ending inventory, which method should he choose? The store manager should choose V because the cost of inventory is V, and therefore, results in the most current cost for ending inventory
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