BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

Use the following information to compute cost of goods sold under the FIFO and LIFO inventory methods. The firm sold 200 units.

images

To determine

Compute the cost of goods sold under the FIFO and LIFO inventory methods.

Explanation

First-in-First-Out (FIFO): In First-in-First-Out method, the first purchased items are sold first. The value of the ending inventory consists of the recently purchased items.

Calculate the cost of goods sold under FIFO method:

Step 1: Calculate the total cost and units of goods available for sales.

Calculation of Goods Available for Sales
DetailsNumber of UnitsRate per unit ($)Total Cost ($)
Beginning balance505250
Add: Purchases   
1st Purchases1008800
2nd Purchases150101,500
Total Goods available for Sale300$2,550
Less: Sales:200
Ending Inventory100

  Table (1)

Step 2: Calculate the cost of ending inventory.

Calculation of Cost of Ending Inventory
DetailsNumber of UnitsRate per Unit ($)Total Cost ($)
2nd Purchases100101,000
Ending Inventory100$1,000

  Table (2)

 Step 3: Calculate the cost of goods sold under FIFO method...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Describe what a tariff is and its economics effects.

Principles of Economics (MindTap Course List)

What is a loan amortization schedule, and what are some ways these schedules are used?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)