Using a perpetual inventory system. This company's beginning inventory of a product and its purchases during the month of January were as follows.                                         Quantity    Unit Cost     Total CostBeginning inventory(Jan 1)   180             $50                   $9,000Purchase(Jan. 9)                     90               $55                   $4,950Purchase(Jan. 22)                   90              $56                   $5,040Total                                      360                                     $18,990On Jan 24. the company sold 200 units of this product. The other 160 units remain in inventory at Jan. 31. Determine the Cost of Goods Sold using LIFO, FIFO, and Average Cost.

Question
Asked Apr 1, 2019

Using a perpetual inventory system. This company's beginning inventory of a product and its purchases during the month of January were as follows.

                                         Quantity    Unit Cost     Total Cost

Beginning inventory(Jan 1)   180             $50                   $9,000

Purchase(Jan. 9)                     90               $55                   $4,950

Purchase(Jan. 22)                   90              $56                   $5,040

Total                                      360                                     $18,990

On Jan 24. the company sold 200 units of this product. The other 160 units remain in inventory at Jan. 31. 

Determine the Cost of Goods Sold using LIFO, FIFO, and Average Cost.

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Expert Answer

Step 1

Calculate the cost of goods sold under LIFO method:

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Step 2

Calculate the cost of goods sold under FIFO method:

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Step 3

Determine the cost of goods available for s...

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