Molly company uses the periodic inventory method and had the following inventory information available 1 1 Beginning inventory Units 100 Unit cost $4 Total cost $400 1 20 Purchase Units 400 Unit cost $5 Total cost $2000 7 25 Purchase Units 200 Unit cost $7 Total cost $1400 10 20 Purchase Units 300 Unit cost $8 Total cost $2400 Total Units 1,000 total cost $6,200 Assume a sales price of $12 per unit Which of the three methods (FIFO, LIFO, or average cost) will provide the lowest net income Assume a sales price of $12 per unit Which of the three methods (FIFO, LIFO, or average cost) will provide the highest revenue

Question

Molly company uses the periodic inventory method and had the following inventory information available  1 1  Beginning inventory  Units   100  Unit cost   $4  Total cost   $400 1 20  Purchase Units   400  Unit cost   $5  Total cost   $2000 7 25 Purchase Units   200  Unit cost   $7  Total cost   $1400 10 20 Purchase  Units   300 Unit cost   $8  Total cost   $2400 Total Units   1,000  total cost   $6,200 Assume a sales price of $12 per unit  Which of the three methods (FIFO, LIFO, or average cost) will provide the lowest net income  Assume a sales price of $12 per unit  Which of the three methods (FIFO, LIFO, or average cost) will provide the highest revenue

Accepted Answer

The Answer is in the image, click to view ...

Molly company uses the periodic inventory method and had the following inventory information available: 1/1. Beginning inventory.

Question:

Accounting Information Systems

Molly company uses the periodic inventory method and had the following inventory information available: 1/1. Beginning inventory.

Question:

Expert Answer:

The Answer is in the image, click to view ... View the full answer

Accounting Information Systems

Students also viewed these Accounting questions