The Inventory Records of Martin Corporation Reflected the Following Information

question 72

Essay

The inventory records of Martin Corporation reflected the following information for the month of August:
$$\begin{array} { l l c c } \text { Date } & { \text { Transaction } } & \text { Number of Units } & \text { Unit Cost } \\8 / 1 & \text { Beginning inventory } & 400 & \$ 5 \\8 / 3 & \text { Purchase No. 1 } & 400 & \$ 5 \\8 / 5 & \text { Sale No. 1 } & 600 & \\8 / 7 & \text { Sale No. 2 } & 100 & \\8 / 11 & \text { Purchase No. 2 } & 1,000 & \$ 7 \\8 / 17 & \text { Sale No. 3 } & 700 & \\8 / 19 & \text { Purchase No. 3 } & 1,000 &\$ 7 \\8 / 21 & \text { Sale No. 4 } & 600 & \\8 / 28 & \text { Sale No. } 5 & 600 & \\8 / 29 & \text { Purchase No. 4 } & 1,200& \$9 \\8 / 30 & \text { Ending inventory } & & \end{array}$$ A.Determine the amount of the ending inventory and cost of goods sold under each of the following methods assuming the periodic inventory system. $$\begin{array} { lcccl } \text { Method} & \text { Ending } & \text { Cost of Goods Sold } \\ & \text { Inventory} & \\\text { a. Weighted-average} & \$ & \$ \\\text {b. FIFO } & \$& \$ \\\text {c. LIFO } & \$ & \$\end{array}$$ B.Why would cash flow considerations relate to the choice of an inventory method?

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Definitions:

Intentional Tort

A wrongful act done on purpose, the perpetrator being aware of their actions aiming to cause harm or injury.

Misdemeanor

A Misdemeanor is a criminal offense that is less severe than a felony and generally punishable by fines or a jail term of less than one year.

Defense of Property

The legal justification for using reasonable force to protect one's property from being damaged or stolen.

Self-defense

A legal defense that involves protecting oneself or others from immediate harm by using reasonable force.