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Cost Inventory Method Merchandise Merchandise Inventory Sold a. FIFO $7,728 $21,522 b. LIFO 6,660 22,590 c. Average cost 7,215 Cost of merchandise available for sale:
| Cost | ||||||||||
| Inventory Method | Merchandise | Merchandise | ||||||||
| Inventory | Sold | |||||||||
| a. | FIFO | $7,728 | $21,522 | |||||||
| b. | LIFO | 6,660 | 22,590 | |||||||
| c. | Average cost | 7,215 | ||||||||
| Cost of merchandise available for sale: | ||||||||||
| 42 | units at | $180 | = | $ 7,560 | ||||||
| 58 | units at | $195 | = | 11,310 | ||||||
| 20 | units at | $204 | = | 4,080 | ||||||
| 30 | units at | $210 | = | 6,300 | ||||||
| 150 | units | $ 29,250 | ||||||||
| a. | First-in, first-out: | |||||||||
| Merchandise inventory: | ||||||||||
| 30 | units at | $210 | = | 6,300 | ||||||
| 7 | units at | $204 | = | 1,428 | ||||||
| 37 | units | $ 7,728 | ||||||||
| Merchandise sold | $ 21,522 | |||||||||
| b. | Last-in, first-out | |||||||||
| Merchandise inventory: | ||||||||||
| 37 | units at | $180 | = | $ 6,660 | ||||||
| Merchandise sold | $ 22,590 | |||||||||
| c. | Average cost | |||||||||
| Average cost = | 29,250 | total cost / | 150 | total units | ||||||
| = | $ 195 | |||||||||
| Merchandise inventory: | ||||||||||
| 37 | units at | $195 | = | $ 7,215 | ||||||
| Merchandise sold | $ | |||||||||
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ACCA Approved Study Text P7 Advanced Audit And Assurance
Authors: BPP
1st Edition
1472744349, 978-1472744340
