Question
In: Accounting
Causwell Company began 2021 with 29,000 units of inventory on hand. The cost of each unit...
Causwell Company began 2021 with 29,000 units of inventory on hand. The cost of each unit was $4.00. During 2021 an additional 45,000 units were purchased at a single unit cost, and 39,000 units remained on hand at the end of 2021 (35,000 units therefore were sold during 2021). Causwell uses a periodic inventory system. Cost of goods sold for 2021, applying the average cost method, is $171,500. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.
Required:
1. Determine the cost of goods sold for 2021 using
the FIFO method. [Hint: Determine the cost per unit of
2021 purchases.] (Do not round intermediate
calculations.)
Solutions
Thank You
ekkarill92 answered 1 year agoRelated Solutions
Causwell Company began 2021 with 25,000 units of inventory on hand. The cost of each unit...
Causwell Company began 2021 with 25,000 units of inventory on
hand. The cost of each unit was $6.00. During 2021 an additional
45,000 units were purchased at a single unit cost, and 35,000 units
remained on hand at the end of 2021 (35,000 units therefore were
sold during 2021). Causwell uses a periodic inventory system. Cost
of goods sold for 2021, applying the average cost method, is
$241,500. The company is interested in determining what cost of
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Causwell Company began 2018 with 22,000 units of inventory on
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42,000 units were purchased at a single unit cost, and 32,000 units
remained on hand at the end of 2018 (32,000 units therefore were
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of goods sold for 2018, applying the average cost method, is
$225,600. The company is interested in determining what cost of
goods sold would...
Ferris Company began January with 7,000 units of its principal product. The cost of each unit...
Ferris Company began January with 7,000 units of its principal
product. The cost of each unit is $6. Merchandise transactions for
the month of January are as follows:
Purchases
Date of Purchase
Units
Unit Cost*
Total Cost
Jan. 10
6,000
$
7
$
42,000
Jan. 18
7,000
8
56,000
Totals
13,000
98,000
* Includes purchase price and cost of freight.
Sales
Date of Sale
Units
Jan. 5
3,000
Jan. 12
3,000
Jan. 20
4,000
Total
10,000
10,000 units were on...
Ferris Company began January with 6,000 units of its principal product. The cost of each unit...
Ferris Company began January with 6,000 units of its principal
product. The cost of each unit is $9. Merchandise transactions for
the month of January are as follows:
Purchases
Date of Purchase
Units
Unit Cost*
Total Cost
Jan. 10
5,000
$
10
$
50,000
Jan. 18
6,000
11
66,000
Totals
11,000
116,000
* Includes purchase price and cost of freight.
Sales
Date of Sale
Units
Jan. 5
3,000
Jan. 12
2,000
Jan. 20
4,000
Total
9,000
8,000 units were on...
Ferris Company began January with 4,000 units of its principal product. The cost of each unit...
Ferris Company began January with 4,000 units of its principal
product. The cost of each unit is $6. Merchandise transactions for
the month of January are as follows:
Purchases
Date of Purchase
Units
Unit Cost*
Total Cost
Jan. 10
3,000
$
7
$
21,000
Jan. 18
4,000
8
32,000
Totals
7,000
53,000
* Includes purchase price and cost of freight.
Sales
Date of Sale
Units
Jan. 5
2,000
Jan. 12
1,000
Jan. 20
3,000
Total
6,000
5,000 units were on...
Ferris Company began 2018 with 6,000 units of its principal product. The cost of each unit...
Ferris Company began 2018 with 6,000 units of its principal
product. The cost of each unit is $6. Merchandise transactions for
the month of January 2018 are as follows:
Purchases
Date of Purchase
Units
Unit Cost*
Total Cost
Jan. 10
5,000
$
7
$
35,000
Jan. 18
6,000
8
48,000
Totals
11,000
83,000
*Includes purchase price and cost of freight.
Sales
Date of Sale
Units
Jan. 5
3,000
Jan. 12
2,000
Jan. 20
4,000
Total
9,000
8,000 units were on...
Ferris Company began 2018 with 4,000 units of its principal product. The cost of each unit...
Ferris Company began 2018 with 4,000 units of its principal
product. The cost of each unit is $7. Merchandise transactions for
the month of January 2018 are as follows:
Purchases
Date of
Purchase
Units
Unit Cost*
Total Cost
Jan. 10
3,000
$
8
$
24,000
Jan. 18
4,000
9
36,000
Totals
7,000
60,000
*Includes purchase price and cost of freight.
Sales
Date of
Sale
Units
Jan. 5
2,000
Jan. 12
1,000
Jan. 20
3,000
Total
6,000
5,000 units were on...
Ferris Company began 2018 with 6,000 units of its principal product. The cost of each unit...
Ferris Company began 2018 with 6,000 units of its principal
product. The cost of each unit is $8. Merchandise transactions for
the month of January 2018 are as follows:
Purchases
Date of
Purchase
Units
Unit Cost*
Total Cost
Jan. 10
5,000
$
9
$
45,000
Jan. 18
6,000
10
60,000
Totals
11,000
105,000
* Includes purchase price and cost of freight.
Sales
Date of
Sale
Units
Jan. 5
3,000
Jan. 12
2,000
Jan. 20
4,000
Total
9,000
8,000 units were...
Ferris Company began January with 7,000 units of its principal product. The cost of each unit...
Ferris Company began January with 7,000 units of its principal
product. The cost of each unit is $6. Merchandise transactions for
the month of January are as follows:
Purchases
Date of Purchase
Units
Unit Cost*
Total Cost
Jan. 10
6,000
$
7
$
42,000
Jan. 18
7,000
8
56,000
Totals
13,000
98,000
* Includes purchase price and cost of freight.
Sales
Date of Sale
Units
Jan. 5
3,000
Jan. 12
3,000
Jan. 20
4,000
Total
10,000
10,000 units were on...
Ferris Company began January with 7,000 units of its principal product. The cost of each unit...
Ferris Company began January with 7,000 units of its principal
product. The cost of each unit is $6. Merchandise transactions for
the month of January are as follows:
Purchases
Date of Purchase
Units
Unit Cost*
Total Cost
Jan. 10
6,000
$
7
$
42,000
Jan. 18
7,000
8
56,000
Totals
13,000
98,000
* Includes purchase price and cost of freight.
Sales
Date of Sale
Units
Jan. 5
3,000
Jan. 12
3,000
Jan. 20
4,000
Total
10,000
10,000 units were on...
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