Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.1P
Moving Average, FIFO, LIFO. Morocco Imports provided the following information regarding its inventory for the current year, its second year of operations.
| Transaction | Units | Sales in Units | Unit Cost | Total Cost |
| Beginning inventory January 1 | 35,000 | $3.50 | $ 122,500 | |
| Purchases | ||||
| February 8 | 45,500 | 3.60 | 163.800 | |
| March 15 | 100.250 | 3.80 | 380.950 | |
| April 10 | 62.000 | 4.10 | 254.200 | |
| Subtotal | 242.750 | $ 921,450 | ||
| Units sold April 22 at $12 May 9 | 81.000 | 155.000 | 4.35 | 352,350 |
| June 19 | 28.000 | 4.56 | 127,680 | |
| Subtotal | 351,750 | $1,401,480 | ||
| Units sold August 11 at $14 September 20 | 15,000 | 115.500 | 4.75 | 71,250 |
| October 30 | 41..000 | 4.85 | 198,850 | |
| November 17 | 8.000 | 4.90 | 39,200 | |
| Subtotal | 415.750 | $1,710,780 | ||
| Units sold December 21 at $16 | 21.500 | |||
| Total available for sale | 415,750 | |||
| Total units sold | (292.0001 | |||
| Ending inventory | 123,750 |
Compute Morocco’s ending inventory and cost of goods sold under each of the following cost-flow assumptions assuming a perpetual inventory system. (Round your answer for cost per unit to two decimal places.)
Required
- a. Moving Average
- b. FIFO
- c. LIFO
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Chapter 10 Solutions
Intermediate Accounting
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