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Problem 6-18A Alternative cost flows—periodic LO8 Synergy Company began 2020 with 20,000 units of Product X...

Problem 6-18A Alternative cost flows—periodic LO8

Synergy Company began 2020 with 20,000 units of Product X in its inventory that cost $7.70 per unit, and it made successive purchases of the product as follows:

Mar. 7 27,000 units @ $ 9.20 each
May 25 32,000 units @ $ 11.20 each
Aug. 1 22,500 units @ $ 12.20 each
Nov. 10 32,000 units @ $ 13.70 each


The company uses a periodic inventory system. On December 31, 2020, a physical count disclosed that 16,000 units of Product X remained in inventory.

Required:
1. Calculate the number and total cost of the units available for sale during 2020.




2. Prepare calculations showing the amounts that should be assigned to the 2020 ending inventory and to cost of goods sold, assuming:

a. FIFO



b. Weighted average cost basis. (Round the "Average cost per unit" answer to 2 decimal places.)

Solutions

Expert Solution

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

ekkarill92 answered 1 year ago
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