Question
Ziad Company had a beginning inventory on January 1 of 285 units of Product 4-18-15 at a cost of $19 per unit. During the year,
Ziad Company had a beginning inventory on January 1 of 285 units of Product 4-18-15 at a cost of $19 per unit. During the year, the following purchases were made.
Mar. 15 | 760 units | at | $22 | Sept. 4 | 665 units | at | $25 | |||||||
July 20 | 475 units | at | $23 | Dec. 2 | 190 units | at | $28 |
1,900 units were sold. Ziad Company uses a periodic inventory system.
A: Determine the cost of good available for sale
B: Calculate the average cost per unit
C: Determine the ending inventory, and the cost of goods sold under each of the assumed cost flow methods. (FIFO, LIFO, and average cost)\
D: Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?
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