Question
Following is the information for the PHL Company for 2019: Inventory on January 1, 2019 8,000 units x $6 $48,000 The company sold 10,000 units
Following is the information for the PHL Company for 2019: Inventory on January 1, 2019 8,000 units x $6 $48,000 The company sold 10,000 units for $240,000 during the year 2019. The total purchases were 12,000 units @ $8 each and the total operating expenses were $25,000 during this period. A periodic method is used. Required: a) Determine the cost of goods sold and the ending inventory on December 31 using the FIFO method.
b) Determine the COGS and inventory balance on December 31, 2019 under the average costing method.
c) Using specific identification, calculate value of ending inventory if the remaining units consisted of 5,000 from the beginning inventory and 5,000 from the purchases during the year.
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