Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Sanberg Company had 331 units on hand at the beginning of the year, with a unit cost of $5.80. The number of units purchased

The Sanberg Company had 331 units on hand at the beginning of the year, with a unit cost of $5.80. The number of units purchased and the unit cost and the number of units sold during the year are shown. What would be the value of the ending inventory of 439 units based on the (a) average cost; (b) first-in, first-out; and (c) last-in, first-out costing methods? Round interim calculations and final answers to two decimal places

Date Units

Purchased
Unit

Cost
Units

Sold
Units

on Hand
Jan. 1 $5.80 331
Feb. 2 195 136
Apr. 16 218 $5.85 354
June 10 322 $5.95 676
Aug. 5 280 396
Oct. 12 254 $5.80 650
Nov. 27 211 439

a. Average cost $

b. First-in, first-out $

c. Last-in, first-out $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the value of the ending inventory using different costing methods well calculate the cost of units sold and the cost of units remaining i... 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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163

More Books

Students also viewed these Accounting questions

Question

Show that if A is any m n matrix, then Im A = A and AIn = A.

Answered: 1 week ago