
Cornerstones of Financial Accounting
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ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Transcribed Image Text:(613 Computing Cost of Goods Sold and Ending Inventory Uinder FIFo, LIFO, and Average Cost
Computing Cost of Goods Sold and Ending Inventory Under
16-
Assume that Madden Company reports the following initial balance and subsequent purcha
inventorv.
Inventory balance at beginning of year ......1,300 units$150 each $195,000
Inventory purchased during the year 1,700 units $180 each 306,000
Cost of goods available for sale during the year..... 3,000 units
$501,000
Assume that 2,000 units are sold during the year. Compute the cost of goods sold for the year and th
inventory on the year-end balance sheet under the following inventory costing methods:
a. FIFO
b. LIFO
c. Average Cost
M6-14. Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cos
Wong Corporation reports the following beginning inventory and inventory purchases.
400 units $12 each 4,800
Inventory balance at beginning of year .
Inventory purchased during the year 700 units@$14 each
Cost of goods available for sale during the year .....1,100 units
9,800
$14,600
Wong sells 600 of its inventory units during the year. Compute the cost of goods sold for the year
the inventory on the year-end balance sheet under the following inventory costing methods:
and
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