Jones Co. started the year with no inventory. During the year, it purchased two identical inventory items at different times. The first purchase cost $1,240 and the other, $1,480. Jones sold one of the items during the year.
Required:
Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory on the year-end financial statements, assuming use of following cost flow assumptions:
a. FIFO?
b. LIFO?
c. Weighted average
Answers: 2
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