Crane Company began the year with 8 units of marine floats at a cost of $10 each. During the year, it made the following purchases: May 5, 32 unit at $15; July 16, 15 units at $19; and December 7, 20 units at $23. Assume there are 25 units on hand at the end of the period. Crane uses the periodic approach.  Determine the cost of goods sold under FIFO.  FIFOCost of good sold $  eTextbook and Media    Determine the cost of goods sold under LIFO.  LIFOCost of good sold $  eTextbook and Media    Calculate average unit cost. (Round answer to 2 decimal places, e.g. 5.12.)Average unit cost $  eTextbook and Media    Determine the cost of goods sold under average-cost.  Average-CostCost of good sold $

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Asked Nov 21, 2019
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Crane Company began the year with 8 units of marine floats at a cost of $10 each. During the year, it made the following purchases: May 5, 32 unit at $15; July 16, 15 units at $19; and December 7, 20 units at $23. Assume there are 25 units on hand at the end of the period. Crane uses the periodic approach.
 
 
Determine the cost of goods sold under FIFO.

    FIFO
Cost of good sold  


 

eTextbook and Media

 
 
 
 
Determine the cost of goods sold under LIFO.

    LIFO
Cost of good sold  


 

eTextbook and Media

 
 
 
 
Calculate average unit cost. (Round answer to 2 decimal places, e.g. 5.12.)

Average unit cost  
 

eTextbook and Media

 
 
 
 
Determine the cost of goods sold under average-cost.

    Average-Cost
Cost of good sold  
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Expert Answer

Step 1

FIFO method:

Under this method, the inventory which is purchased first will sold first and the inventory will consists of recent purchases.

Step 2

Calculate number of...

Number of units sold= Beginning inventory +Purchase - Ending inventory
-8 units +32 units +15 units +20 units-25 units
=50 units
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Number of units sold= Beginning inventory +Purchase - Ending inventory -8 units +32 units +15 units +20 units-25 units =50 units

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