The units of an item available for sale during the year were as follows: January 10 January 15 Inventory Sold 27 units @ $90 20 units February 27 March 1 Purchase Sold 54 units @ $98 35 units July 11 July 15 Purchase Sold 63 units @ $106 75 units November 13 Purchase 36 units @ $115 There are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine both ending inventory and cost of goods sold by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method. Show your work.
The units of an item available for sale during the year were as follows: January 10 January 15 Inventory Sold 27 units @ $90 20 units February 27 March 1 Purchase Sold 54 units @ $98 35 units July 11 July 15 Purchase Sold 63 units @ $106 75 units November 13 Purchase 36 units @ $115 There are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine both ending inventory and cost of goods sold by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method. Show your work.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 1PEA: The following three identical units of Item BZ1810 are purchased during November: Assume that one...
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The units of an item available for sale during the year were as follows:
January 10 January 15 |
Inventory Sold |
27 units @ $90 20 units |
February 27 March 1 |
Purchase Sold |
54 units @ $98 35 units |
July 11 July 15 |
Purchase Sold |
63 units @ $106 75 units |
November 13 |
Purchase |
36 units @ $115 |
There are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine both ending inventory and cost of goods sold by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method. Show your work.
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