50.1K

Verified Solution

Link Copied!

Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing

method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following

information at the end of the accounting period, January $31.$ The inventory's selling price is $$14$ per unit.

Required:

Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January $31$ under each of the following

inventory costing methods:

a$.$ Weighted average cost.

b$.$ First$-$in$,$ first$-$out.

c$.$ Last$-$in$,$ first$-$out.

d$.$ Specific identification, assuming that the January $10$ sale was from the beginning inventory and the January $17$ sale was from the

January $12$ purchase.

$2-$a$.$ Of the four methods, which will result in the highest gros$$ profit?

$2-$b$.$ Of the four methods, which will result in the lowest income taxes?

Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January $31.$

Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January $31.$ The inventory's selling price is $$14$ per unit.

Answer & Explanation Solved by verified expert

See Answer