Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Inventory information for Part 311 of Chi Corp. discloses the following information for the month of June (beginning balance of the month =0): June
Inventory information for Part 311 of Chi Corp. discloses the following information for the month of June (beginning balance of the month =0): June 1. Purchased 800 units @ $16 per unit June 11. Purchased 800 units @ $18 per unit June 15. Sold 300 units Required: In cost flow assumptions for inventory such as LIFO and FIFO, we have to consider the order of purchase in order to compute COGS and ending inventory balance. Given the information of Chi Corp. above, answer the following questions: a) If Chi Corp. uses FIFO and Perpetual system, then, what is the unit cost of the inventories sold on June 15? Why? b) If Chi Corp. uses LIFO and Perpetual system, then, what is the unit cost of the inventories sold on June 15? Why? c) If Chi Corp. uses Weighted Average Cost and Perpetual system, then, what is the unit cost of the inventories sold on June 15? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started