P6.3 Marlow Bed and Bath had a beginning inventory of 400 units of Product Kimbo at...

P6.3

Marlow Bed and Bath had a beginning inventory of 400 units of Product Kimbo at a cost of £8 per unit. During the year, purchases were :

Feb.20 200 units at £9

May.6 500 units at £10

Aug.12 600 units at £11

Dec.8. 300 units at £12

Marlow uses a periodic inventory system. Sales totaled 1,500 units.

Instructions

Determine the cost of goods available for sale.
Determine (1) the ending inventory and (2) the cost of goods sold under the two assumed cost flow method (FIFO and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and average-cost methods
Which cost flow method results in (1) the lower ending inventory amount for the statement of financial position, and (2) the lower cost of goods sold for the income statement?

Expert Solution

ekkarill92 answered 2 years ago

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