The following data are available for Sellco for the fiscal year ended on January 31, 2020: Sales

Question:

The following data are available for Sellco for the fiscal year ended on January 31, 2020:

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,600 units
Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . .      500 units @ $4
Purchases, in chronological order . . . . . . . . . . . .      600 units @ $5
                                                                                           800 units @ $6
                                                                                           500 units @ $8


Required:

a. Calculate cost of goods sold and ending inventory under the following cost flow assumptions (using a periodic inventory system):

1. FIFO.

2. LIFO.

3. Weighted average. Round the unit cost answer to two decimal places and ending inventory to the nearest $10.

b. Assume that net income using the weighted-average cost flow assumption is $80,000. Calculate net income under FIFO and LIFO.

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

Accounting What the Numbers Mean

ISBN: 978-1260565492

12th edition

Authors: David Marshall, Wayne McManus, Daniel Viele

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