In its first month of operations, Literacy for the Illiterate opened a new books
ID: 2584486 • Letter: I
Question
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 420 units at $9 on January 1, (2) 600 units at $10 on January 8, and (3) 900 units at $11 on January 29.
Assume 1,120 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost flow assumptions. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.)
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 420 units at $9 on January 1, (2) 600 units at $10 on January 8, and (3) 900 units at $11 on January 29.
Assume 1,120 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost flow assumptions. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.)
FIFO LIFO Weighted Average Cost Cost of Goods Available for Sale $19,680 $19,680 $19,680 Ending Inventory Cost of Goods SoldExplanation / Answer
FIFO Method
Cost of goods sold
Ending inventory
LIFO Method
Cost of goods sold
Ending inventory
Weighted average cost method
Cost of goods sold
Ending inventory
Units Rate Amount Sale from beginning inventory 420 $ 9 $ 3,780 Sale from Janaury 8th purchase 380 $ 10 $ 3,800 Cost of goods sold 800 $ 7,580Related Questions
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