Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. xyz company is a startup company, and it has pu

1. XYZ Company is a startup company, and it has purchased inventory as follows: Date Quantity Price 2/1/16 1000 1.05 3/1/16 500 1.10 5/1/16 800 1.00 6/1/16 1500 .90 7/1/16 2500 1.02 8/1/16 750 1.15 Assume you have...

80.2K

Verified Solution

Question

Accounting

1. XYZ Company is a startup company, and it has purchasedinventory as follows:

DateQuantityPrice
2/1/1610001.05
3/1/165001.10
5/1/168001.00
6/1/161500.90
7/1/1625001.02
8/1/167501.15

Assume you have sold 2,250 units in 2016.

Given that fact, how much would inventory be valued on thebalance sheet under the following methods and how much Cost ofGoods Sold would be recognized as well?

a. LIFO Method

b. FIFO Method

c. Average Cost Method

Answer & Explanation Solved by verified expert
4.2 Ratings (780 Votes)
All working forms part of the answer Working for Ending no of units Units purchased 1000 500 800 1500 2500 750 7050 units Units sold 2250 units Ending Inventory units 7050 2250 4800 units Requirement a LIFO Method Under LIFO method ending Inventory is first valued on the earliest purchases then moving    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

1. XYZ Company is a startup company, and it has purchasedinventory as follows:DateQuantityPrice2/1/1610001.053/1/165001.105/1/168001.006/1/161500.907/1/1625001.028/1/167501.15Assume you have sold 2,250 units in 2016.Given that fact, how much would inventory be valued on thebalance sheet under the following methods and how much Cost ofGoods Sold would be recognized as well?a. LIFO Methodb. FIFO Methodc. Average Cost Method

Other questions asked by students

Q

When a species goes extinct, its removal affects other species in the trophic hierarchy. What...

Biology
Q

Question 7 The TERT gene encodes for telomerase and is an example of a(n) ________________. tumor suppressor gene oncogene histone transcription...

Biology
Q

List the 3 pieces of legislation that protect employees from discrimination. What defenses does an organization...

Psychology
Q

A heavily insulated steam turbine operates steadily and is supplied with 1 kg/s steam at 2MPa,...

Mechanical Engineering
Q

Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication...

Accounting
Q

Deficit spending is O borrowing more money than the government receives O borrowing less money...

Biology
Q

invests 6 154 in a savings account with a fixed annua est rate of 8...

Basic Math
Q

Maddux Corporation has an EBIT of $955,000 per year that is...

Accounting
Q

- Review Case Problem: PAR Inc, from Chapter 10 in the...

Accounting
Q

Show your work 6. When there is agreement between a measure or description and the...

Accounting
Q

On March 1, Sather Co. sold merchandise to Boone Co. on account, $29,800, terms 2/15,...

Accounting
Q

Use the following to answer questions 14-15 The following are data available for "Fun In...

Accounting