Problem 3 - Calculate ending inventory and cost of goods sold Princess Company uses a periodic inventory system. The company's records for the month of February were as follows: Units Unit Cost Total Cost $120 1,260 525 Date February 1 Inventory 10 February 8 Purchase 90 February 17 Purchase 35 February 28 Purchase _ 20 $12 14 15 16 155 320 $2,225 Total | 146 units were sold in February. Purpose The purpose of this problem is to demonstrate an understanding of calculating ending inventory and cost of goods sold using different cost flow |assumptions. |Instructions After analyzing the transactions, calculate the ending inventory at February 28th and cost of goods sold using the FIFO and LIFO methods. Guidance For guidance, see the calculation examples that are provided in Chapter 6 of the textbook. Your Answers: FIFO LIFO Ending inventory at February 28th Cost of goods sold

Problem 3 - Calculate ending inventory and cost of goods sold Princess Company uses a periodic inventory system. The company's records for the month of February were as follows: Units Unit Cost Total Cost $120 1,260 525 Date February 1 Inventory 10 February 8 Purchase 90 February 17 Purchase 35 February 28 Purchase _ 20 $12 14 15 16 155 320 $2,225 Total | 146 units were sold in February. Purpose The purpose of this problem is to demonstrate an understanding of calculating ending inventory and cost of goods sold using different cost flow |assumptions. |Instructions After analyzing the transactions, calculate the ending inventory at February 28th and cost of goods sold using the FIFO and LIFO methods. Guidance For guidance, see the calculation examples that are provided in Chapter 6 of the textbook. Your Answers: FIFO LIFO Ending inventory at February 28th Cost of goods sold

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 62E

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