mybusi Start of wwil.docx cristiano Ronaldo1.docx Microsoft Office Home E Busine
ID: 2537984 • Letter: M
Question
mybusi Start of wwil.docx cristiano Ronaldo1.docx Microsoft Office Home E BusinessCourse E Menu August 1 Beginning inventory 980 units of Product A@ $1,600 total cost 900 units of Product A@ $2,116 total cost 5 Purchased 8 Purchased 11 Sold 1,100 units of Product A $4416 total cost 1,050 units of Product A Calculate the August cost of goods sold and the ending inventory at August 31 using (a) first-in, fin methods. Do not round until your final answers. Round your final answers to the nearest dollar. A. First-in, first-out Ending Inventory $ Cost of Goods Sold B. Last-in, first-out Ending Inventonys Cost of Goods Sold s C. Weighted-average costExplanation / Answer
Solution:
1) FIFO
Ending inventory = 1,930 units
Cost of goods sold = $1,765
Working:
Ending inventory = 980 + 900 +1100 -1050 = 1,930 units
COGS:
Units
Amount
980
1600
70
2.35
165
(2116/900 = 2.35)
1050
1765
2) LIFO
Ending inventory = 1,930 units
Cost of goods sold = $1600
Working:
Ending inventory = 980 + 900 +1100 -1050 = 1,930 units
COGS:
Units
Amount
1050
4.01
1,600
(4416/1100 = 4.01)
3) Weighted average
Ending inventory = 1,930 units
Cost of goods sold = $2,865
Working:
Ending inventory = 980 + 900 +1100 -1050 = 1,930 units
COGS:
1050 * [(1600 + 2116 + 4416 ) / (980 + 900 + 1100)]
1050 * 2.72886
2,865
Units
Amount
980
1600
70
2.35
165
(2116/900 = 2.35)
1050
1765
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