Causwell Company began 2013 with 18,000 units of inventory on hand. The cost of

Question

Causwell Company began 2013 with 18,000 units of inventory on hand. The cost of each unit was $5. During 2013 an additional 38,000 units were purchased at a single unit cost, and 28,000 units remained on hand at the end of 2013 (28,000 units therefore were sold during 2013). Causwell uses a periodic inventory system. Cost of goods sold for 2013, applying the average cost method, is $166,600. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.

Determine the cost of goods sold for 2013 using the FIFO method. [Hint: Determine the cost per unit of 2013 purchases.]

FIFO cost of goods sold __________

Determine the cost of goods sold for 2013 using the LIFO method.

LIFO cost of goods sold _________

Causwell Company began 2013 with 18,000 units of inventory on hand. The cost of each unit was $5. During 2013 an additional 38,000 units were purchased at a single unit cost, and 28,000 units remained on hand at the end of 2013 (28,000 units therefore were sold during 2013). Causwell uses a periodic inventory system. Cost of goods sold for 2013, applying the average cost method, is $166,600. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.

Explanation / Answer

LET THE UNIT PRICE AT WHICH ADDITIONAL UNITS ARE PURCHASED BE

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.