Question
Aircard Corporation tracks the number of units purchased and sold during each accounting period, but applies the inventory costing method at the end of each
Aircard Corporation tracks the number of units purchased and sold during each accounting period, but applies the inventory costing method at the end of each period as if it were using a periodic inventory system. Below are the transactions for the month of July.
units | The unit cost | ||||||
1 July | Starting Inventory | 2.500 | $ | 35 | |||
July 5th | Sold out | 1.500 | |||||
july 13 | Purchased | 6.500 | 39 | ||||
17 July | Sold out | 3.500 | |||||
25 July | Purchased | 8.500 | 41 | ||||
July 27 | Sold out | 5.500 | |||||
If Aircard uses ( a ) FIFO, ( b ) LIFO, or ( c ) weighted average cost,
calculate the cost of goods available for sale, finished inventory, and goods sold.
Step by Step Solution
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Step: 1
To calculate the cost of goods available for sale we need to add up the cost of starting inventory and purchases Starting inventory cost 2500 units 35 ...Get Instant Access to Expert-Tailored Solutions
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Step: 3
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Get StartedRecommended Textbook for
Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
78025915, 978-1259115400, 1259115402, 978-0078025914
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