Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help, I am not sure what I'm doing wrong with LIFO. Please explain. Inventory Costing Methods-Periodic Method Chen Sales Corporation uses the periodic inventory

Please help, I am not sure what I'm doing wrong with LIFO. Please explain.

image text in transcribed

Inventory Costing Methods-Periodic Method Chen Sales Corporation uses the periodic inventory system. On January 1, 2012, Chen had: 1,000 units of product A with a unit cost of $50 per unit. A summary of purchases and sales during 2012 follows: Unit Units Units Cost Purchased Sold Feb.2 400 Apr.6 $52 1,800 July 10 1,600 Aug. 9 56 800 Oct.23 800 Dec.30 59 1,200 Required a. Assume that Chen uses the first-in, first-out method. Compute the cost of goods sold for 2012 and the ending inventory balance at December 31, 2012, for product A. b. Assume that Chen uses the last-in, first-out method. Compute the cost of goods sold for 2012 and the ending inventory balance at December 31, 2012, for product A. C. Assume that Chen uses the weighted-average cost method. Compute the cost of goods sold for 2012 and the ending inventory balance at December 31, 2012, for product A. Do not round until your final answers. Round your answers to the nearest dollar. 115,600 143,600 a. First-in, First-out: Ending Inventory $ Cost of Goods Sold $ b. Last-in, first-out: Ending Inventory $ Cost of Goods Sold $ C. Weighted Average Ending Inventory $ Cost of goods sold $ 111,200 x 148,000 x 108,000 151,200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Treasury Financial Manual Volume 1 Book 2

Authors: US Treasury

1st Edition

1790318432, 978-1790318438

More Books

Students also viewed these Accounting questions

Question

What is the difference between ordinal and nominal data?

Answered: 1 week ago