Jeannies Books sells discount hard back novels. The inventory, purchases, and sales for a recent...
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Accounting
Jeannies Books sells discount hard back novels. The inventory, purchases, and sales for a recent month in chronological order are as follows:
Activities
Unit
Unit cost ($)
Beginning Inventory, May 1
100
$4.00
Puchase, May 8
140
$4.25
Sale, May 10
160
-
Purchase, May 16
220
$4.50
Purchase, May 22
120
$4.80
Sale, May 28
330
-
Assume that Jeannies Books uses a periodic inventory system.
Instructions
Compute the cost of goods sold relating to the sales in May and the ending inventory of Jeannies Books at May 31, using the following cost flow assumptions:
1. FIFO
2. LIFO
3. Average Cost
Show the number of units and the unit costs of each inventory layer comprising the ending inventory. You may determine the cost of goods sold by deducting ending inventory from the cost of goods available for sale.
Answer & Explanation
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