Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Applying and Analyzing Inventory Costing Methods At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of

Applying and Analyzing Inventory Costing Methods At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $32. A summary of purchases during the current period follows.

UnitsUnit CostCostBeginning Inventory1,000$32$32,000Purchase #11,8003461,200Purchase #28003830,400Purchase #31,2004149,200

During the current period, Chen sold 2,800 units.

(a) Assume that Chen uses the first-in, first-out method. Compute both cost of good sold for the current period and the ending inventory balance. Use the financial statement effects template to record cost of goods sold for the period. Ending inventory balance $Answer

Cost of goods sold $Answer

Use negative signs with answers, when appropriate.

Balance Sheet

Transaction Cash Asset +

Noncash

Assets

= Liabilities +

Contributed

Capital

+

Earned

Capital

Record FIFO cost of goods sold

Income Statement

Revenue - Expenses =

Net

Income

(b) Assume that Chen uses the last-in, first-out method. Compute both cost of good sold for the current period and the ending inventory balance. Ending inventory balance $Answer

Cost of goods sold $Answer

(c) Assume that Chen uses the average cost method. Compute both cost of good sold for the current period and the ending inventory balance. Ending inventory balance $Answer

Cost of goods sold $Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: David Ricchiute

5th Edition

0538869526, 978-0538869522

More Books

Students also viewed these Accounting questions

Question

What benefit or advantage does your organization offer each public?

Answered: 1 week ago