Summers Company Began Business on August 1, 2017, and Uses

question 50

Essay

Summers Company began business on August 1, 2017, and uses the periodic inventory method. During August, Summers made the following purchases:
$\begin{array}{lll}\text { August } 3 & 100 \text { units @ } \$ 10 & \$ 1,000 \\\text { August } 21 & 300 \text { units } @ \$ 20 & \$ 6,000\end{array}$
Other information provided:
$$\begin{array} { l r } \text { August sales } & 350 \text { units at } \$ 50 \text { each } \\\text { August expenses excluding cast of goods sold } & \$ 7,200 \\\text { August } 31 \text { current assets excluding irventory } & \$ 34,000 \\\text { August } 31 \text { current liabilities } & \$ 25,000\end{array}$$
Calculate Summers' August 31 ending inventory under the FIFO and LIFO cost flow assumptions.

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