Question
A company has the following inventory data: Date Units Purchased Cost per Unit Units Sold Jan 1 1,000 $10 Feb 1 1,200 $12 800 Mar
A company has the following inventory data:
Date | Units Purchased | Cost per Unit | Units Sold |
Jan 1 | 1,000 | $10 | |
Feb 1 | 1,200 | $12 | 800 |
Mar 1 | 1,500 | $14 | 900 |
(a) Calculate the ending inventory using FIFO. (b) Determine the cost of goods sold using LIFO. (c) Compute the ending inventory using the weighted average method. (d) Discuss the impact of each inventory costing method on financial statements.
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th edition
1118096894, 978-1-11921511, 978-1118096895
