This problem-based learning activity helps students apply inventory cost flow methods under a periodic inventory system. Students determine the value of the ending inventory and cost of goods. The four methods included are specific identification, weighted average cost, first-in first-out (FIFO), and last-in first-out (LIFO). In addition, they compare and contrast how applying the different costing methods affects the balance sheet and income statement. Students are given data to use in their computations. Following the computations, students compare amounts to financial statements.