Bartov Corporation reports the following beginning inventory and purchases for 2017Beginning inventory 400 @ $10 ea. $4,000Inventory purchased 700 @ $12 ea. $8,400Cost of goods sold 1,100 @ X ea.    $12,400What is the cost of goods sold at 1,100 units tottalling $12,400?Bartov sells 600 of these units in 2017. Compute its cost of goods sold in 2017 and the ending inventory reported on its 2017 balance sheet under each of the following inventory costing methods:FIFO LIFO Average CostCost of goods soldEnding Inventory

Question
Asked Nov 21, 2019
12 views

Bartov Corporation reports the following beginning inventory and purchases for 2017
Beginning inventory 400 @ $10 ea. $4,000
Inventory purchased 700 @ $12 ea. $8,400
Cost of goods sold 1,100 @ X ea.    $12,400

What is the cost of goods sold at 1,100 units tottalling $12,400?

Bartov sells 600 of these units in 2017. Compute its cost of goods sold in 2017 and the ending inventory reported on its 2017 balance sheet under each of the following inventory costing methods:
FIFO LIFO Average Cost
Cost of goods sold
Ending Inventory

 

check_circle

Expert Answer

star
star
star
star
star
1 Rating
Step 1

Determine cost of goods sold and ending inventory under FIFO.

help_outline

Image Transcriptionclose

Cost of Merchandise sold Inventory Qty. Unit cost Total cost Qty. Unit cost Total cost Qty. Unit cost Total cost $ 10 $4,000 $10 $4,000 $ 12 S 8,400 Purchases Date Beginning Purchase 700 400 $ 12 S 8,400 400 700 $10 $4,000 S 12 S 2,400 500 $ 6,400 500 Sale 400 200 $ 12 6,000 $ 6,000 Balance 600

fullscreen
Step 2

Determine cost of goods sold and ending inventory under LIFO.

help_outline

Image Transcriptionclose

Cost of Merchandise sold Inventory Qty. Unit cost Total cost Qty. Unit cost Total cost Qty. Unit cost Total cost $ 10 $4,000 $10 $4,000 $12 8,400 $10 $4,000 $ 12 1,200 $5,200 Purchases Date Beginning Purchase 700 400 $ 12 8,400 400 700 S 12 S7,200 400 Sale 600 100 $7,200 500 Balance 600

fullscreen
Step 3

Determine cost of goods sold and endin...

help_outline

Image Transcriptionclose

Average cost method: Average cost per unit = $12,400/ 1,100 $11.273 Cost of goods sold = 600 units x S11.273 = S6,764 Ending inventory 500 units x $11.273 $5,636

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Caro Manufacturing has two production departments, Machining and Assembly, and two service departmen...

A: a. Use the step method to allocate the service costs, assume that the order of allocation starts wit...

question_answer

Q: Brief Exercise 10-03 Sheffield Corp. Supply does not segregate sales and sales taxes at the time of...

A: Sales Tax: Sales tax is the tax amount paid by a company to a governing body for the amount of goods...

question_answer

Q: Last month, Laredo Company sold 490 units for $45 each. During the month, fixed costs were $5,724 an...

A: Break-even PointBreak-even point is the volume of sales at which there is neither profit nor loss. T...

question_answer

Q: Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable...

A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a company...

question_answer

Q: https://camdenccinstructure.com/courses/3788/assignments/3. sions Question 4 rences View Policies or...

A: Compute the savings if the order is accepted.

question_answer

Q: 6-13A.LO2 In oregon, employers who are covered by the state workers' compensation law withhold emplo...

A: Click to see the answer

question_answer

Q: You want to compare Rite Aid's leverage to other firms in the Retail Pharmaceutical industry. To ass...

A: Ratio analysis is the analytical tool used by the analyst to measure the financial performance of th...

question_answer

Q: Internal Rate of Return Method The internal rate of return method is used by King Bros. Construction...

A: Hence, 3.037 is the PV of an annuity of $1. It is obtained by the division of initial investment and...

question_answer

Q: I asked this question just now and received the incorrect answer. Trying again...     .   On Janu...

A: Click to see the answer