Marin Inc. uses a perpetual inventory system. Data for product E2-D2 include the purchases shown below.

Date

Number of Units

Unit Price

May 7 60 $17

July 28 34 22

On June 1, Marin Inc. sold 30 units, and on August 27, 34 more units.

Calculate the average cost of the goods sold in the sale. (Round answers to 3 decimal places, e. g. 5.125.)

June 1 sale: $

Aug. 27 sale: $

Compute the cost of goods sold using FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e. g. 125.)

FIFO

LIFO

AVERAGE-COST

Cost of goods sold

$

$

$,

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?