The DJ company uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during December 2020 are given below. December 01: Beginning inventory, 50 units @ Rs40 per unit.December 18: Inventory purchased, 60 units @ Rs48 per unit.December 20: Inventory purchased, 20 units @ Rs 52 per unit.December 25: Inventory purchased, 70 units @ Rs56 per unit.The DJ company sold 160 units during December 2020.Required: Compute inventory on December 31, 2020, and cost of goods sold for December using the following inventory costing method:Last in, first-out (LIFO) method.Average cost method.

Name: The DJ company uses a periodic inventory system. The beginning balance
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Description: The DJ company uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during December 2020 are given below. December 01: Beginning inventory, 50 units @ Rs40 per unit.December 18: Inventory purchased, 6

Introduction Inventory may be defined as the stock of goods ready to be sold at a particular point…

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Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

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The DJ company uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during December 2020 are given below.

December 01: Beginning inventory, 50 units @ Rs40 per unit.
December 18: Inventory purchased, 60 units @ Rs48 per unit.
December 20: Inventory purchased, 20 units @ Rs 52 per unit.
December 25: Inventory purchased, 70 units @ Rs56 per unit.

The DJ company sold 160 units during December 2020.

Required: Compute inventory on December 31, 2020, and cost of goods sold for December using the following inventory costing method:

Last in, first-out (LIFO) method.
Average cost method.

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