10A. Heavenly Books has the following transactions in August related to merchand

Question

10A. Heavenly Books has the following transactions in August related to merchandise inventory. Click the icon to view the transactions.) a. Determine the cost of goods sold and ending merchandise inventory using the FIFO inventory costing method assuming Heavenly Books uses the periodic inventory system. b. Determine the cost of goods sold and ending merchandise inventory using the LIFO inventory costing method assuming Heavenly Books uses the periodic inventory system. c. Determine the cost of goods sold and ending merchandise inventory using the weighted-average inventory costing method assuming Heavenly Books uses the periodic inventory sy a., b., and c. Determine the cost of goods sold and ending merchandise in Books uses the periodic inventory system. (Round weighted average cost More Info and (c) weighted-avera a. FIFO Aug. 1 Beginning merchandise inventory, 15 books $19 each 3 Sold 8 books@ $21 each 12 Purchased 14 books $21 each 15 Sold 10 books @ $21 each 20 Purchased 5 books $25 each 28 Sold 7 books@ $24 each 285 Beginning merchandise inventory Plus: Net cost of purchases Cost of goods available for sale Less: Ending merchandise inventory Cost of goods sold Print Done

Explanation / Answer

Calculate following :

a. FIFO b. LIFO c. Weighted average Beginning merchandise inventory 285 285 285 Add: net cost of purchases 419 419 419 Cost of goods available for sale 704 704 704 Less: Ending merchandise inventory (5*25+4*21) = -209 (9*19) = -171 (704/34*9) = -186 Cost of goods sold 495 533 518

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