(Learning Objective 2: Applying the average, FIFO, and LIFO methods) Continental Sporting Goods started April with an inventory of nine sets of golf clubs that cost a total of $1,260. During April C

(Learning Objective 2: Applying the average, FIFO, and LIFO methods) Continental Sporting Goods started April with an inventory of nine sets of golf clubs that cost a total of $1,260. During April Continental purchased 25 sets of clubs for $4,000. At the end of the month, Continental had 8 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:

•a. Average cost (round average unit cost to the nearest cent)

•b. FIFO

•c. LIFO

FIFO Average LIFO

Cost of Goods $4140 $4022.46 $3980

Ending Inventory $1120 $1237.68 $1280

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