Question

In: Accounting

Part 2 -McCubbin Company uses the periodic inventory system to account for inventories. Information related to...

Part 2 -McCubbin Company uses the periodic inventory system to account for inventories. Information related to McCubbin Company's inventory at October 31 is given below:

October       1      Beginning inventory                               300    units @ $10.00 =           $ 3,000

                      8      Purchase                                                   900    units @ $10.40 =               9,360

                    16      Purchase                                                   500    units @ $10.80 =               5,400

                    24      Purchase                                                   300    units @ $11.60 =            3,480

                                        Total units and cost                   2,000    units                                $21,240

Instructions

1.    Show calculations to value the ending inventory using the FIFO cost assumption if 600 units remain on hand at October 31.

2.    Show calculations to value the ending inventory using the weighted average cost method if 600 units remain on hand at October 31.

3.    Show calculations to value the ending inventory using the LIFO cost assumption if 600 units remain on hand at October 31.

Solutions

Expert Solution

Solution 1:

Solution 2:

Solution 3:


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