In: Accounting
INVENTORIES – Problem 2
$ Value |
||||
# Units |
If FIFO firm |
If W-Avg firm |
If LIFO firm |
|
Beginning Inventory |
55 |
550 |
520 |
480 |
Purchases: |
# Units |
Unit Cost |
||
Purchase on February 4 |
22 |
12 |
||
Purchase on May 15 |
20 |
13 |
||
Purchase on October 20 |
48 |
15 |
||
Sale on November 1: 84 Units at $30 per unit |
Show your work
a. What is the cost of goods sold for the year assuming LIFO method is used?
b. What is the cost of goods sold for the year assuming FIFO method is used?
c. What is the cost of goods sold assuming Weighted Average method is used?
The answer is attached in below picture.
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