3) "Peyton's You'll Jump High Shoe Company", sells volleyball sneakers. At the beginning of October of 2023 Peyton had beginning inventory of 700 pairs of shoes at a cost of $48 per pair. During the month of October, she made purchases of the following pairs of shoes: October 9-800 pairs at $50 per pair October 16-500 pairs at $52 per pair October 23-1200 pairs at $54 per pair October 30-600 pairs at $56 per pair During October she sold 3100 pairs of shoes. a) Determine the total number of pairs of shoes and the dollar value of the pairs of shoes that she has available for sale. b) Determine the value of the ending inventory and the cost of goods sold under each of the following cost flow methods: Average Cost; FIFO; LIFO c) Which method gives us the highest cost of goods sold? Why is that so? d) Which method gives us the highest value of ending inventory? Why is that so?

3) "Peyton's You'll Jump High Shoe Company", sells volleyball sneakers. At the beginning of October of 2023 Peyton had beginning inventory of 700 pairs of shoes at a cost of $48 per pair. During the month of October, she made purchases of the following pairs of shoes: October 9-800 pairs at $50 per pair October 16-500 pairs at $52 per pair October 23-1200 pairs at $54 per pair October 30-600 pairs at $56 per pair During October she sold 3100 pairs of shoes. a) Determine the total number of pairs of shoes and the dollar value of the pairs of shoes that she has available for sale. b) Determine the value of the ending inventory and the cost of goods sold under each of the following cost flow methods: Average Cost; FIFO; LIFO c) Which method gives us the highest cost of goods sold? Why is that so? d) Which method gives us the highest value of ending inventory? Why is that so?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

3) "Peyton's You'll Jump High Shoe Company", sells volleyball sneakers. At the beginning of
October of 2023 Peyton had beginning inventory of 700 pairs of shoes at a cost of $48 per pair.
During the month of October, she made purchases of the following pairs of shoes:
October 9- 800 pairs at $50 per pair
October 16-500 pairs at $52 per pair
October 23-1200 pairs at $54 per pair
October 30-600 pairs at $56 per pair
During October she sold 3100 pairs of shoes.
a) Determine the total number of pairs of shoes and the dollar value of the pairs of shoes
that she has available for sale.
b) Determine the value of the ending inventory and the cost of goods sold under each of
the following cost flow methods: Average Cost; FIFO; LIFO
c) Which method gives us the highest cost of goods sold? Why is that so?
d) Which method gives us the highest value of ending inventory? Why is that so?

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