Question
Beginning inventory, purchases, and sales data for Commodity A are as follows: June 1: Inventory 15 units at Birr 20.00 3:
Beginning inventory, purchases, and sales data for “Commodity A” are as follows:
June 1: Inventory 15 units at Birr 20.00
3: Sold 5 units
12: Purchased 20 units at 22.50
18: Sold15 units
30: Purchased10 units at 25.00
Required: If a periodic inventory system and perpetual inventory are used, determine separately the cost of ending inventory and Cost of goods sold using:
FIFO
LIFO
AC (weighted average costing method)
Step by Step Solution
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Step: 1
FIFO FirstInFirstOut Under the FIFO method we assume that the first items purchased are the first ones sold Calculation of the cost of ending inventor...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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Accounting
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Volume 1, 2nd canadian Edition
176509739, 978-0176509736, 978-0176509743
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