Brief Exercise 5-1 (Algo) Allocating product cost between cost of goods sold and ending inventory:...
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Brief Exercise 5-1 (Algo) Allocating product cost between cost of goods sold and ending inventory: multiple purchases. LO 5-1 LoDo Designs sells smart phone cases that are custom designed by local artists. Its beginning inventory of cases was 174 units at $35 per unit. During the year, Cortez made two batch purchases of these cases. The first was a 212-unit purchase at $38 per unit; the second was a 310-unit purchase at $41 per unit. During the period, it sold 564 cases. Required: Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that LoDo Designs uses hs a. FIFO. b. LIFO. Cost of goods sold Ending inventory FIFO LIFO
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