Inventory Flow Assumptions
Flat TV Uses a Perpetual Inventory System

Essay

Inventory flow assumptions
Flat TV uses a perpetual inventory system. Shown below are Flat TV's beginning inventory of a particular product and purchases during January:
On January 23 (prior to the purchase on January 25), Flat TV sold 13 units of this product.
Determine the cost of goods sold relating to the sale on January 23 under each of the following flow assumptions. (Show your computations.)
$$\begin{array} { | l | c | c | c | } \hline & \text { Quantity } & \text { Unit Cost } & \text { Total Cost } \\\hline \text { Beginning inventory (Jan. 1) } & 6 & \$ 195 & \$ 1,170 \\\hline \text { Purchase (Jan. 6) } & 12 & \$ 225 & 2,700 \\\hline \text { Purchase (Jan. 25) } & \underline { 12 } & \$ 230 & \underline { 2,760 } \\\hline \text { Total } & \underline { 30 } & & \$ 6,630 \\\hline\end{array}$$ $\begin{array}{|l|l|}\hline \text { (a) LIFO } & \$ \underline{\quad\quad}\\\hline \text { (b) FIFO } & \$ \underline{\quad\quad}\\\hline \text { (c) Average cost (or moving average) } & \$\underline{\quad\quad} \\\hline\end{array}$