P6-3B Smythe Company Inc. had a beginning inventory of 200 units of Product ERV at a cost of $6 per unit. During the year, purchases were: 800 units at $7 400 units at $8 Aug. 19 Nov. 30 600 units at $9 350 units at $10 Jan. 24 Apr. 12 Smythe Company uses a periodic inventory system. Sales totaled 1,900 units. Instructions (a) Determine the cost of goods available for sale. (b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round average unit cost to three decimal places.) (c) Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?

P6-3B Smythe Company Inc. had a beginning inventory of 200 units of Product ERV at a cost of $6 per unit. During the year, purchases were: 800 units at $7 400 units at $8 Aug. 19 Nov. 30 600 units at $9 350 units at $10 Jan. 24 Apr. 12 Smythe Company uses a periodic inventory system. Sales totaled 1,900 units. Instructions (a) Determine the cost of goods available for sale. (b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round average unit cost to three decimal places.) (c) Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?

Name: Determine cost of goods soldand ending inventory usingFIFO, LIFO, and
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Description: Determine cost of goods soldand ending inventory usingFIFO, LIFO, and average-costin a periodic inventory systemand assess financial statementeffects.(LO 2, 3), APP6-3B Smythe Company Inc. had a beginning inventory of 200 units of Product ERV ata co

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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