Question
The beginning inventory was 320 units at a cost of $10 per unit. Goods available for sale during the year were 1,360 units at
The beginning inventory was 320 units at a cost of $10 per unit. Goods available for sale during the year were 1,360 units at a total cost of $15,060. In May, 620 units were purchased at a total cost of $5,820. The only other purchase transaction occurred during October. Ending Inventory was 580 units. Required: a. Calculate the number of units purchased in October and the cost per unit purchased in October. b. 1. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. 2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method.
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Answer Explanation A UNITS PURCHASED IN OCTOBER IS 420 AT THE RATE OF 12 PER UNIT B1 FIFO FIRST IN F...Get Instant Access to Expert-Tailored Solutions
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
10th edition
9780077515904, 007802529X, 77515900, 978-0078025297
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