Peeke Company uses the periodic method of accounting Peeke Company has the following inventory information summarizing activity during November Beginning Inventory 100 units $30 00 per unit Purchase 1 60 units $35 00 per unit Purchase 2 40 units $40 00 per unit Ending Inventory (physical count) 30 units Peeke's recorded 17,000 in Sales Revenue 1 What cost is assigned to Peeke's ending inventory using Average Cost Round interim computations to the nearest penny and your final answer to the nearest dollar A $1200 B $1005 C $900 D $6700 2 What is the cost assignment to Peekes COGS (cost of goods sold) using FIFO (First In First Out) A $5695 B $5500 C $5800 D $5650 3 What is Peekes cost of ending inventory using LIFO (Last In First Out) A $1200 B $5800 C $1050 D $900 4 What will Peeke report as gross margin for November assuming they use LIFO (Last In First Out) A $11200 B $5800 C $11500 D $5500 E $17000 5 What is the COGAS (cost of good available for sale) for November HINT Remember, COGAS is sum of COGS and cost of ending inventory This is the same regardless of if you are using FIFO, LIFO or Weighted Average, so you pick whichever one you'd like It is the allocation of COGAS between COGS and EI that varies depending on the method employed A $9000 B $3800 C $6700 D $17000

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

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 23, 2024

Peeke Company uses the periodic method of accounting. Peeke Company has the following inventory information summarizing activity during November: Beginning Inventory 100 units @ $30.00

Peeke Company uses the periodic method of accounting. Peeke Company has the following inventory information summarizing activity during November:

Beginning Inventory	100 units @ $30.00 per unit
Purchase #1	60 units @ $35.00 per unit
Purchase #2	40 units @ $40.00 per unit
Ending Inventory (physical count)	30 units

Peeke's recorded 17,000 in Sales Revenue.

1. What cost is assigned to Peeke's ending inventory using Average Cost? Round interim computations to the nearest penny and your final answer to the nearest dollar.

	A.	$1200
	B.	$1005
	C.	$900
	D.	$6700

2. What is the cost assignment to Peekes COGS (cost of goods sold) using FIFO (First In First Out)?

	A.	$5695
	B.	$5500
	C.	$5800
	D.	$5650

3. What is Peekes cost of ending inventory using LIFO (Last In First Out)?

	A.	$1200
	B.	$5800
	C.	$1050
	D.	$900

4. What will Peeke report as gross margin for November assuming they use LIFO (Last In First Out)?

	A.	$11200
	B.	$5800
	C.	$11500
	D.	$5500
	E.	$17000

5. What is the COGAS (cost of good available for sale) for November?

HINT: Remember, COGAS is sum of COGS and cost of ending inventory. This is the same regardless of if you are using FIFO, LIFO or Weighted Average, so you pick whichever one you'd like. It is the allocation of COGAS between COGS and EI that varies depending on the method employed.