Solaris Co. began year 2011 with 6,300 units of product in its January 1 inventory costing $35

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Solaris Co. began year 2011 with 6,300 units of product in its January 1 inventory costing $35 each. It made successive purchases of its product in year 2011 as follows. The company uses a periodic inventory system. On December 31, 2011, a physical count reveals that 16,500 units of its product remain in inventory.
Jan. 4 . . . . . . . . . . 10,500 units @ $33 each
May 18 . . . . . . . . .13,000 units @ $32 each
July 9 . . . . . . . . . . 12,000 units @ $29 each
Nov. 21 . . . . . . . . 15,500 units @ $26 each

Required
1. Compute the number and total cost of the units available for sale in year 2011.
2. Compute the amounts assigned to the 2011 ending inventory and the cost of goods sold using
(a) FIFO,
(b) LIFO, and
(c) Weighted average.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  book-img-for-question

Fundamental Accounting Principles

ISBN: 978-0078110870

20th Edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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