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 InventoryThe 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 =...
Step by Step Answer:
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele