edugen Probdem 6 3A Carla Vista Co, had a begening inventory of 92 unts of Produ
ID: 2409558 • Letter: E
Question
edugen Probdem 6 3A Carla Vista Co, had a begening inventory of 92 unts of Product RST t a coot of $7 per unt. Duning the year, parchases w reb. 20 544 untst Au 12 65 units at $10 May 5 510 units at $9Dec8 ts at $1 Carla Vista Co. uses a periodic inventory system. Sales totaled 1,470 units (a) Determine the cost of goods avalable for sale The cost of goods available for sale s (b) Calculate Average Cost.(Roand answer to 3 decinal places eg. s.ias Average Cost Determre the endrg rventory and the cost of goods sold wear each of the asomed cost flow methaa (nro, uro, and ,wageat) (Bundes-n FIFO LIFO AVERAGE COSI The ending inventory The cost of goods sold Which cost flow methed results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the incom results in the lowest inventory amount for the balance sheet resuts in the lowest cost of goods sold for the income statement Click ?" you would like to Show Work for this question: Open gen work searchExplanation / Answer
a)
Units
Cost per unit
value
Opening Stock
92
$ 7.00
$ 644.00
Purchases
Feb
544
$ 8.00
$ 4,352.00
May
510
$ 9.00
$ 4,590.00
Aug
365
$ 10.00
$ 3,650.00
Dec
96
$ 11.00
$ 1,056.00
Goods Available for Sale
1607
$ 14,292.00
The Cost of Goods Available for sale are $ 14292.
b)
Average Cost of Inventory
Units
(A)
1607
Total Cost
(B)
$ 14,292.00
Average Cost
(C=B/A)
8.894
c)
FIFO
Total Units Available for sale
1607
Units Sold
1470
Closing Stock in Units
137
Valuation
Closing stock
96
@
$ 11.00
$ 1,056.00
41
@
$ 10.00
$ 410.00
Value Of Closing Stock
$ 1,466.00
Cost of Goods sold
(14292-1466)
12826
FIFO
Total Units Available for sale
1607
Units Sold
1470
Closing Stock in Units
137
Valuation
Closing stock
92
@
$ 7.00
$ 644.00
45
@
$ 8.00
$ 360.00
Value Of Closing Stock
$ 1,004.00
Cost of Goods sold
(14292-1004)
13288
Weighted Average
Total Units Available for sale
1607
Units Sold
1470
Closing Stock in Units
137
Valuation
Closing stock
137
@
$ 8.894
$ 1,218.42
Value Of Closing Stock
$ 1,218.422
Cost of Goods sold
(14292-1218.422)
13073.578
FIFO
LIFO
Weighted Average
Ending Inventory
$ 1,466.00
$ 1,004.00
$ 1,218.422
Cost of Goods Sold
12826
13288
13073.578
LIFO
results in lowest inventory amount for the Balance Sheet
FIFO
results in Lowest Cost of Goods Sold for Income Statement
a)
Units
Cost per unit
value
Opening Stock
92
$ 7.00
$ 644.00
Purchases
Feb
544
$ 8.00
$ 4,352.00
May
510
$ 9.00
$ 4,590.00
Aug
365
$ 10.00
$ 3,650.00
Dec
96
$ 11.00
$ 1,056.00
Goods Available for Sale
1607
$ 14,292.00
The Cost of Goods Available for sale are $ 14292.
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