Question
Waqar Sound uses a periodic inventory system. One of the stores products is a wireless headphone. The inventory quantities, purchases, and sales of this product
Waqar Sound uses a periodic inventory system. One of the stores products is a wireless headphone. The inventory quantities, purchases, and sales of this product for the most recent year are as follows:
| Number of units | Cost per Unit | Total Cost |
Inventory, Jan 1 | 10 | 150 | Rs 1500 |
First Purchase | 30 | 101 | 3030 |
Second Purchase | 40 | 140 | 5600 |
Third Purchase | 5 | 110 | 550 |
Fourth Purchase | 15 | 130 | 1,950 |
Good available for sale | 100 |
|
|
Units sold during the year | 80 |
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|
Inventory, Dec 31 | 20 |
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|
Instructions
a. Using periodic costing procedures, compute the cost of the December 31 inventory and the cost of goods sold for the year under each of the following cost assumptions:
1. First-in, first-out.
2. Last-in, first-out.
3. Average cost (round to the nearest dollar, except unit cost).
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