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Can someone help me on Part 2 please show work thanks. Peach Company's beginning inventory and purchases during the fiscal year ended December 31, 2018
Can someone help me on Part 2 please show work thanks.
Peach Company's beginning inventory and purchases during the fiscal year ended December 31, 2018 were as follows: (NOTE: The company uses a periodic system of inventory.) Unit Price $29 Total Cost $493 $27 $1,215 Units January 1-Beginning inventory 17 March 12-Sold April 11-Purchase June 20-Sold 33 Aug 16-Purchase 36 Sept 11-Sold Total Cost of Inventory Ending inventory is 23 units. $24 $864 $2,572 Part 1: Calculate the following assuming Peach uses FIFO: a) What is the value of ending inventory Value of ending inventory = Ending inventory * Unit price Value of ending inventory = 23 * $24 Value of ending inventory = $552 b) What is the cost of goods sold? Cost of goods sold - Cost of inventory - Value of ending inventory Cost of goods sold = $2,572 - $552 Cost of goods sold = $2,020 Part 2: Calculate the following assuming Peach uses Average Cost: a) What is the value of ending inventory b) What is the cost of goods soldStep by Step Solution
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