Jones Co. started the year with no inventory. During the year, it purchased two identical inventory items at different times. The first purchase cost $1,240 and the other, $1,570. Jones sold one of the items during the year.
Required:
Based on this information, how much product cost would be allocated to the cost of goods sold and ending inventory on the year-end financial statements, assuming the use of the following?
(a) FIFO
(b) LIFO
(c) Weighted average