A company has a beginning inventory of $40,000 and purchases during the year of

Question

A company has a beginning inventory of $40,000 and purchases during the year of $110,000. The beginning inventory consisted of 3,000 units and 7,000 units were purchased during the year. The company has 4.000 units left at year-end. Under average-cost, what is Cost of Goods Sold? $60,000 $90,000 $110,000 $150,000 My answer is $ Thelen's inventory records show the following data at January 31: At January 31.210 units are still on hand. What Is the cost of the ending inventory at January 31 if Thelen uses the LIFO method? $1,680 $1,900 $2,210 $3,000 My answer is $ Given the following data, what is Cost of Goods Sold as determined by the FIFO method $1,400 $1,460 $1,724 $2,240 My answer is $. Under U.S. GAAP, inventories are reported on the balance sheet at: historical cost only. current replacement cost only. net realizable value only. A and B. balance sheet at: B and C

Explanation / Answer

Average Invesntory

would be

First calculat the weighted average price per unit = Total cost of units /No.of units

=(40,000+11000)/(3000+7000)

=150,000/10000

= $ 15 per unit is the average cost per units

Now unts sold 10000-4000=6000 Units

Total cost would be =6000*15 = $90000

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