Question

In: Accounting

Urgent XX Company had a beginning inventory on January 1 of 160 units of Product 4-18-15...

Urgent

XX Company had a beginning inventory on January 1 of 160 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made.

Date

Units

Price

Mar. 15

450 units

$22

July 20

200 units

$23

Sept. 4

330 units

$25

Dec. 2

110 units

$30

1,000 units were sold. XX Company uses a periodic inventory system.

Instructions

(a) Determine the cost of goods available for sale.

(b) Determine (1) the ending inventory, and (2) the cost of goods sold under each of the

assumed cost flow methods (FIFO, LIFO, and average-cost).

(c) Which cost flow method results in (1) the highest inventory amount for the balance

sheet, and (2) the highest cost of goods sold for the income statement?

Solutions

Expert Solution

Highest cost of goods sold is for weighted average

Highest ending inventory is for FIFO

ekkarill92 answered 2 years ago
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