Horan Ltd has the following inventory transactions for the month of December 2020. All inventory items are identical. During the month, the following inventory transactions took place in the Horan Ltd: Opening inventory recorded on 1 December 2020; 1250 units @$11.50 Purchased on 2 December 2020; 3500 units @$12.50 Purchased on 12 December 2020; 4500 units @$14.50 Purchased on 21 December 2020; 2100 units @$15.50 Horan Ltd sold 9,500 units during the month and had the remaining units on hand at the month end. Required: Compute the costs of sales and ending inventory following the periodic system to record the inventory value under each of the following cost flow method: First in, First out (FIFO) method Weighted average cost method
Horan Ltd has the following inventory transactions for the month of December 2020. All inventory items are identical. During the month, the following inventory transactions took place in the Horan Ltd: Opening inventory recorded on 1 December 2020; 1250 units @$11.50 Purchased on 2 December 2020; 3500 units @$12.50 Purchased on 12 December 2020; 4500 units @$14.50 Purchased on 21 December 2020; 2100 units @$15.50 Horan Ltd sold 9,500 units during the month and had the remaining units on hand at the month end. Required: Compute the costs of sales and ending inventory following the periodic system to record the inventory value under each of the following cost flow method: First in, First out (FIFO) method Weighted average cost method
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter13: Accounting For Merchandise Inventory
Section: Chapter Questions
Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...
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Question
Horan Ltd has the following inventory transactions for the month of December 2020. All inventory items are identical. During the month, the following inventory transactions took place in the Horan Ltd:
Opening inventory recorded on 1 December 2020; 1250 units @$11.50
Purchased on 2 December 2020; 3500 units @$12.50
Purchased on 12 December 2020; 4500 units @$14.50
Purchased on 21 December 2020; 2100 units @$15.50
Horan Ltd sold 9,500 units during the month and had the remaining units on hand at the month end.
Required:
- Compute the costs of sales and ending inventory following the periodic system to record the inventory value under each of the following cost flow method:
- First in, First out (FIFO) method
- Weighted average cost method
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