Answered step by step
Verified Expert Solution
Question
1 Approved Answer
James Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as
James Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Balance at 1 December 2020 160 units @$10 per unit. Purchase on Dec 20 140 units at total costs of $1820. Purchase on Dec 25 230 units at total cost of $3450. On 24 Dec, James Inc. sold 250 units of this product. i.) Calculate the cost of goods sold based on the assumption of using: a.) FIFO (2 marks) b.) LIFO (2 marks) c.) Average cost (2 marks) ii.) Calculate the inventory values at January 31 assuming Bond uses: a. FIFO (1 mark) b. LIFO (1 mark)
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