Sunset Surfwear sells wet suits. On January 2 there were 21 wet suits at a total cost

Question:

Sunset Surfwear sells wet suits. On January 2 there were 21 wet suits at a total cost of $4,809 in inventory.

At the end of the year, there were 17 wet suits in ending inventory. Of these, 1 was purchased on July 27, 10 were purchased on September 27, and 6 were purchased on November 29.

Instructions Assign a cost to the ending inventory using the following:

a. the specific identification method

b. the FIFO method

c. the LIFO method

d. the weighted average cost method

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Glencoe Accounting First Year Course

ISBN: 9780078688294

1st Edition

Authors: Andrée Vary

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Question Posted: Jun 14, 2022 08:05 AM

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Sunset Surfwear sells wet suits. On January 2 there were 21 wet suits at a total cost

Question:

Date Jan. 2 Jan. 3 Mar. 17 July 27 Sept. 27 Nov. 29 Description Beginning inventory Purchase Purchase Purchase Purchase Purchase Total Wet Suits 21 10 6 12 10 6 65 Cost $229 235 238 240 241 244 Total $ 4,809 2,350 1,428 2,880 2,410 1,464 $15,341

Step by Step Answer:

a The specific identification method assigns the cost of each individual item to the ending inventor...View the full answer

Glencoe Accounting First Year Course

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