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How can i calculate Cost of goods sold and ending inventory using FIFO, LIFO and the periodic system given the information below? On December 1,
How can i calculate Cost of goods sold and ending inventory using FIFO, LIFO and the periodic system given the information below?
On December 1, 2017, Ivanhoe Company had the account balances shown below.
Debits | Credits | |||||
---|---|---|---|---|---|---|
Cash | $5,180 | Accumulated DepreciationEquipment | $1,460 | |||
Accounts Receivable | 4,230 | Accounts Payable | 2,710 | |||
Inventory (2,900 x $0.60) | 1,740 | Common Stock | 10,200 | |||
Equipment | 21,400 | Retained Earnings | 18,180 | |||
$32,550 | $32,550 |
The following transactions occurred during December.
Dec. 3 | Purchased 3,900 units of inventory on account at a cost of $0.70 per unit. | |
5 | Sold 4,300 units of inventory on account for $1.00 per unit. (It sold 2,900 of the $0.60 units and 1,400 of the $0.70.) | |
7 | Granted the December 5 customer $100 credit for 100 units of inventory returned costing $70. These units were returned to inventory. | |
17 | Purchased 2,300 units of inventory for cash at $0.80 each. | |
22 | Sold 2,000 units of inventory on account for $0.86 per unit. (It sold 2,000 of the $0.70 units.) |
Adjustment data:
1. | Accrued salaries and wages payable $320. | |
2. | Depreciation on equipment $220 per month. | |
3. | Income tax expense was $190, to be paid next year. |
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