QUESTION 6: P6-13A Kane Ltd. had a beginning inventory on January 1 of 250 units...
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Accounting
QUESTION 6: P6-13A Kane Ltd. had a beginning inventory on January 1 of 250 units of product SXL at a cost of $160 per unit. During the year, purchases were as follows:
Units
Unit Cost
Total Cost
Mar. 15
700
$150
$105,000
July 20
500
145
72,500
Sept.4
450
135
60,750
Dec. 2
100
125
12,500
Kane uses a periodic inventory system. At the end of the year, a physical inventory count determined that there were 200 units on hand.
Instructions
(a) Determine the cost of goods available for sale.
(b) Determine the cost of the ending inventory and the cost of the goods sold using (1) FIFO and (2) average cost. (Use unrounded numbers in your calculation of the average unit cost but round to the nearest cent for presentation purposes in your answer.)
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