Problem 1 (45 points; expected time: 10-15 minutes) The following information co
ID: 2476810 • Letter: P
Question
Problem 1 (45 points; expected time: 10-15 minutes)
The following information comes from CROW Inc.'s inventory records:
Purchase date
Units
Cost per unit
Sale date
Units sold
Beginning inventory
40
$12
Jan 2
150
$10
Jan 10
125
Jan 12
100
$8
Jan 15
100
Jan 20
100
$5
Jan 31
50
Required:
(15 points) Determine Ending inventory using the LIFO perpetual method.
(15 points) Determine Cost of goods sold using the FIFO periodic method.
(15 points) Determine Ending inventory using the Average periodic method.
Purchase date
Units
Cost per unit
Sale date
Units sold
Beginning inventory
40
$12
Jan 2
150
$10
Jan 10
125
Jan 12
100
$8
Jan 15
100
Jan 20
100
$5
Jan 31
50
Explanation / Answer
Units Rte Amount Closing balance Closing QTY Beginning inventory 40 12 480 480 40 Jan 2 Purchase 150 10 1500 1980 190 Jan-10 Sales 125 10 1250 730 65 Jan 12 Purchase 100 8 800 1530 165 Jan 15 Sales 100 8 800 730 65 Jan 20 Purchase 100 5 500 1230 165 Jan 15 Sales 50 5 250 980 115 Ending inventory using the LIFO perpetual method 980 Rate Amount Beginning inventory 40 12 480 Jan 2 150 10 1500 Jan 12 85 8 680 Cost of goods sold using the FIFO periodic method. 275 2660 QTY Rate Amount Beginning inventory 40 12 480 Jan 2 Purchase 150 10 1500 Jan 12 Purchase 100 8 800 Jan 20 Purchase 100 5 500 390 3280 Ending inventory using the Average periodic method =3280/390 *115 967.18
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