Hawall Pacific University SunGard Higher Education Chega Study Guided Solutions
ID: 2336577 • Letter: H
Question
Hawall Pacific University SunGard Higher Education Chega Study Guided Solutions and S. The following data are available for Sellco for the fiscal year ended on January 31, 2017: Sales Beginning inventory Purchases, in chronological order 780 units 290 units @$3 330 units e$5 400 units $6 220 units @S8 Required: a. Calculate cost of goods sold and ending inventory under the cost flow assumptions, FIFO, LIFO and Weighted average (using a periodic inventory system): (Round unit cost to 2 decimal places.) Cost of Goods Sold Ending Inventory FIFO LIFO Weighted average b. Assume that net income using the weighted-average cost flow assumption is $14,400. Calculate net income under F cost to 2 decimal places.) flow assumption is $14,400. Calculate net income under FIFO and LIFO. (Round unt Net Income FIFO LIFOExplanation / Answer
Solution:
a.
Working ;
FIFO
Cost of goods sold = 290x$3 + 330x$5 + 160x$6
= $870 + $1,650 + $960 = $3,480
Ending inventory = 240x$6 +220x$8
= $1440 + $1760 = $3,200
LIFO
Cost of goods sold = 220x$8 + 400x$6 + 160x$5
= $1,760 + $2,400 + $800 = $4,960
Ending inventory = 170x$5 + 290x$3
= $850+ $870 = $1,720
Weighted average
Weight average cost = total cost / total units
= $6,680 / 1,240 = $5.39
Cost of goods sold = 780 x $5.39 = $4,204
Ending inventory = 460 x $5.39 = $2,476
Solution b
FIFO
Net income = sales - Cost of goods sold
= $10,196 - $3,480 = $6,716
LIFO
Net income = sales - cost of goods sold
= $10,196 - $4,960 = $5,236
Working
Net income under weighted average method = $14,400
Sales - cost of goods sold = $14,400
Sales - $4,204 = $14,400
Sales = $10,196
Cost of goods sold Ending inventory FIFO $3,480 $3,200 LIFO $4,960 $1,720 Weighted average $4,202 $2,478Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.