The answers are i) a. and ii) b. Please thorughly explain how you approached you
ID: 2600311 • Letter: T
Question
The answers are i) a. and ii) b. Please thorughly explain how you approached your answers
5.A Periodic: A company reports the following beginning inventory and purchases, and it ends the period with 30 units in inventory Beginning inventory Purchase1 Purchase 2 100 units at $10 cost per unit 40 units at $12 cost per unit 20 units at $14 cost per unit i) Compute ending inventory using the FIFO periodic system. Page 282 a. $400 b. $1,460 C.$1,360 d. $300 ii) Compute cost of goods sold using the LIFO periodic system. a. $400 c. $1,360 d. $300Explanation / Answer
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Inventory valuation (FIFO)
Date
Receipt
Issue
Balance
Quantity
Rate
Amount
Quantity
Rate
Amount
Quantity
Rate
Amount
01-Jan
100
10
1000
02-Jan
40
12
480.00
100
10
1000
40
12
480
03-Jan
20
14
280
100
10
1000
40
12
480
20
14
280
04-Jan
100
10
1000
40
12
480
20
14
280
05-Jan
30
12
360
10
12
120
20
14
280
Balance
30
400
In FIFO ( First in first out method the goods received first will be sold first, so the value of ending inventory will be 30 units ($400).
Plz ignore the dates.
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Inventory valuation (LIFO)
Date
Receipt
Issue
Balance
Quantity
Rate
Amount
Quantity
Rate
Amount
Quantity
Rate
Amount
01-Jan
100
10
1000
02-Jan
40
12
480.00
100
10
1000
40
12
480
03-Jan
20
14
280
100
10
1000
40
12
480
20
14
280
04-Jan
20
14
280
100
10
1000
40
12
480
05-Jan
40
12
480
100
10
1000
06-Jan
70
10
700
30
10
300
1460
In this method goods received last will be sold first, so the value of goods issued will be (280 + 480 + 700 = 1460
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Hope that helps.
Feel free to comment if you need further assistance J
Inventory valuation (FIFO)
Date
Receipt
Issue
Balance
Quantity
Rate
Amount
Quantity
Rate
Amount
Quantity
Rate
Amount
01-Jan
100
10
1000
02-Jan
40
12
480.00
100
10
1000
40
12
480
03-Jan
20
14
280
100
10
1000
40
12
480
20
14
280
04-Jan
100
10
1000
40
12
480
20
14
280
05-Jan
30
12
360
10
12
120
20
14
280
Balance
30
400
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