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The following transactions took place in the month of May at Regal Corporation. The opening inventory consisted of 50 units at $10. On May 2, the company purchased 60 units at $12. On May 10, it sold 10 units. On May 22, it purchased an additional 100 units at $15. On May 24, 150 units were sold.
Required:
- Assume Regal uses the perpetual inventory system. Calculate the cost of goods sold and ending inventory for each of specific identification, FIFO, and weighted average inventory methods. For specific identification, assume the newest units are sold first.
- Assume Regal uses the periodic inventory system. Calculate the cost of goods sold and ending inventory for each of specific identification, FIFO, and weighted average inventory methods. For specific identification, assume the newest units are sold first.
- Comment on the results.
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