(a) Determine the cost of goods available for sale. (b) Determine the ending inv

Question

                                (a) Determine the cost of goods available for sale.                             

                                (b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the                                accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round average unit cost to three decimal places.)                             

                                (c) Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income                                statement?

SHOW ALLLLLLLL original  WORK  not a sample

Explanation / Answer

Cost of goods if we follow FIFO = 200@6 + 800@ 7 + 600@9 + 300@8 = 14600

Ending inventory = 100@8 + 350@10 = 4300

(Since total sales was 19000 we took 19000 items starting from the initial inventory)

Cost of goods if we follow LIFO = 350@10 + 400@8 + 600@9 + 550 @ 7 = 15950

Ending inventory = 350@7 = 2450

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