Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. inventory by three methods; cost of goods sold the

Inventory by Three Methods; Cost of Goods Sold The units of an item available for sale during the...

Free

80.2K

Verified Solution

Question

Accounting

Inventory by ThreeMethods; Cost of Goods Sold

The units of an itemavailable for sale during the year were as follows:

Jan. 1Inventory21 units at $1,800
May 15Purchase29 units at $1,950
Aug. 7Purchase10 units at $2,040
Nov. 20Purchase15 units at $2,100

There are 18 units ofthe item in the physical inventory at December 31.

Determine the cost ofending inventory and the cost of goods sold by three methods,presenting your answers in the following form:

Cost
Inventory MethodEnding InventoryCost of Goods Sold
a. First-in, first-out method$$
b. Last-in, first-out method$$
c. Weighted average cost method$$

Answer & Explanation Solved by verified expert
4.2 Ratings (491 Votes)

per unit total
units cost
1-Jan Inventory 21 1,800 37800
15-May purchase 29 1,950 56550
7-Aug purchase 10 2,040 20400
20-Nov purchase 15 2,100 31500
total 75 146250
units sold = 75-18= 57
weighted average cost per unit = 146,250/75
1950
cost of goods sold = 57*1950= 111150
inventory                  = 18*1950= 35100
FIFO
1-Jan Inventory 21 1,800 37800
15-May purchase 29 1,950 56550
7-Aug purchase 7 2,040 14280
cost of goods sold total 57 108630
7-Aug purchase 3 2,040 6120
20-Nov purchase 15 2,100 31500
Ending inventory total 18 37620
LIFO
per unit total
units cost
1-Jan Inventory 3 1,800 5400
15-May purchase 29 1,950 56550
7-Aug purchase 10 2,040 20400
20-Nov purchase 15 2,100 31500
cost of goods sold total 57 113850
per unit total
units cost
1-Jan Inventory 18 1,800 32400
ending COGS
Inventory Method inventory
FIFO 37620 108630
LIFO 32400 113850
Weighted average cost method 35100 111150

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

Other questions asked by students

Q

Fertilizer with weed control costing $38 per pound bag is to be mixed with less expensive...

Basic Math
Q

Define Bergmann's rule and Allen's rule in relation to climate adaptation. What is one example of...

Medical Sciences
Q

What is resonance? Is it possible to experience a perfect resonance or it is just a...

Civil Engineering
Q

Edit View View Insert Format Tools

Biology
Q

Which of the following statements best describes the true nature of natural selection The strong...

Biology
Q

1 3A www 302 9V Find reading of ammeter in given circuit 2 6A 4...

Physics
Q

4 Almost independent of h 9 A spring balance reads 200 gF when carrying a...

Physics
Q

23 find the followi llowing F u iF F X 7 x X option A...

Calculus
Q

Question I: Patrick Garcia Pvt. uses an estimated overhead rate for allocating production overhead to...

Accounting
Q

Exercise 8-13 Presented below is information related to Blowfish radios for the Blossom Company or...

Accounting
Q

James Co has the following related to Class 8 assets: Beginning UCC Balance: $30739 James...

Accounting
Q

Question B 3. (6 points) James Smith, an international fund manager, uses the...

Finance