Thet ]WileyPLUS Kimmel, Financial Accounting, Be, Custom for University of Akron

Question

Thet ]WileyPLUS Kimmel, Financial Accounting, Be, Custom for University of Akron Help I System Announcements (d) Inventory Calculations Keaton Accessories uses a perpetusal inventory system. The company's beginning Inventory of a particular product and its purchases during the month of January were as follows Quantity Unit Cost Total Cost $50 $9,000 4,950 56 5,040 $18,990 Beginning Inventory CJan. 1) Purchase (Jan. 9) Purchase (Jan. 21) 90 90 360 Total On January 24, Keaton sold 200 units of this product. The other 160 units remain in inventory at anuary 3. L) Determine the cost of goods sold using each of the following flow assumptions: LIFO FIFO Average cost li.) Determine the cost of the 160 units in inventory at January 31 using each of the following flow assumptions: LIFO FIFO Average Cost D Attempts: 0 of 3 used SAVE FOR LATER

Explanation / Answer

Ans.1 Cost of goods sold: Sold units = total units available - Ending inventory units 360 - 160 200 LIFO 90 56 5040 90 55 4950 20 50 1000 COGS 200 10990 FIFO 180 50 9000 20 55 1100 COGS 200 10100 AVERAGE COST COGS = Total cost - cost of Ending inventory 18990 - 8440 10550 Ans.2 Ending inventory cost LIFO Units rate amount 160 50 8000 FIFO Units rate amount 90 56 5040 70 55 3850 160 8890 AVERAGE COST Average cost per unit = Total cost / Total quantity 18990 / 360 52.75 cost of Ending inventory = Ending inventory units * Average cost per unit 160 * 52.75 8440

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