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E 7 - 8 ( Algo ) Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and Weighted Average Cost [ LO 7

E7-8(Algo) Analyzing and Interpreting the Financial Statement Effects of Periodic FIFO, LIFO, and
Weighted Average Cost [LO 7-3]
Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method
at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at
the end of the annual accounting period, December 31.
Transactions
a. Inventory, Beginning
For the year:
b. Purchase, April 11
c. Purchase, June 1
d. Sale, May 1(sold for $45 per unit)
e. Sale, July 3(sold for $45 per unit)
f. Operating expenses (excluding income tax expense), $16,000
Required:
Calculate the number and cost of goods available for sale.
Calculate the number of units in ending inventory.
Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.
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