Question
What am I doing wrong I feel like i am missing a big part of the assignment? Aranas Manufacturing, a tool retailer, began year 20x7
What am I doing wrong I feel like i am missing a big part of the assignment?
Aranas Manufacturing, a tool retailer, began year 20x7 with 21,500 units of product in its January 1 inventory, at a cost of $12.50 for each unit. It made successive purchases of its product in year 20x7, as follows. The company uses a periodic inventory system. On December 31, 20x7, a physical count reveals that 35,000 units of its product remain in inventory.
Mar. 7
25,000 units
@ $16 each
May 25
41,500 units
@ $19 each
Aug. 1
22,750 units
@ $23 each
Nov. 10
38,100 units
@ $24 each
Instructions
Using the template provided below.
- Compute the number and total cost of the units available for sale in year 20x7.
- Compute the amounts assigned to the 20x7 ending inventory, and the cost of goods sold for FIFO, LIFO, and weighted average.
- The 113,850 units sold are $31 each. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average, which include a detailed cost of goods sold section as part of each statement. (Round your average cost per unit to 2 decimal places.)
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