ACCC Daves Company Inventory Finance for Business Costing Methods Discussion

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ACCC Daves Company Inventory Finance for Business Costing Methods Discussion

Allen County Community College, Business Finance

ACCC Daves Company Inventory Finance for Business Costing Methods Discussion

Question Description

This is the requirements for daves company inventory

Compute cost of goods sold and ending inventory, using each of the following methods:

a.	Specific identification, with seven $170 units and four $180 units still on hand at the end
b.	Average cost
c.	FIFO
d.	LIFO

Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?

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