Brief Exercise 7-4
Inventory Costing Methods
A company with no inventory buys the following three inventory items:
On January 10, the company sells one item for $10.
On January 15, the company sells a second item for $10.
The company uses a perpetual inventory system.
Required:
Calculate the company’s cost of goods sold under the following inventory costing methods. If required, round your answers to two decimal places.
a. FIFO$ _________________ b. LIFO$ _________________ c. Moving Average$ _________________
