Compute Cost of Goods Sold under each method of inventory: average cost, FIFO, L
ID: 2474995 • Letter: C
Question
Compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. (Cost of goods sold and ending inventory may not add up to cost of goods available for sale due to rounding. Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.)
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Transactions Units Amount Inventory, January 1, 2011 496 $ 2,480 Purchase, January 12 618 3,708 Purchase, January 26 153 1,224 Sale (370) Sale (245)Compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. (Cost of goods sold and ending inventory may not add up to cost of goods available for sale due to rounding. Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.)
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Explanation / Answer
FIFO Method units rate amount Sale from beginning inventory 496 2480/496 = 5 2480 sale from jan 12th purchase 119 3708/618 = 6 119*6 = 714 Cost of goods sold 3194 LIFO Method units rate amount Sale from Jan 26th Purchase 153 1224/153 = 8 1224 Sale from jan 12th purchase 462 3708/618 = 6 462*6 = 2772 Cost of goods sold 3996 Average Cost Cost of goods available for sales 1267 7,412/1,267 = 5.85 7412 Cost of goods sold 615 5.85 3597.75 Specific Identification Sale from beginning inventory 370 2480/496 = 5 370*5 = 1850 sale from jan 12th purchase 245 3708/618 = 6 245*6 = 1470 Cost of goods sold 3320
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