4. Xu Company began business on January 1, 20X1. During 20X1 the firm made the following purchases: 20X1: January 7 February 9 April 29 July 21 September 4 November 12 150 units @ $4.00 100 units @ $4.20 250 units @ $4.40 200 units @ $4.40 160 units @ $4.50 140 units @ $4.60 During 20X1 the firm sold 720 units. Assume Xu Company uses a periodic inventory system. Required a. Determine the amount of the cost of goods sold and the ending inventory for 20X1 using the FIFO inventory valuation method. b. Determine the amount of the cost of goods sold and the ending inventory for 20X1 using the LIFO inventory valuation method.
4. Xu Company began business on January 1, 20X1. During 20X1 the firm made the following purchases: 20X1: January 7 February 9 April 29 July 21 September 4 November 12 150 units @ $4.00 100 units @ $4.20 250 units @ $4.40 200 units @ $4.40 160 units @ $4.50 140 units @ $4.60 During 20X1 the firm sold 720 units. Assume Xu Company uses a periodic inventory system. Required a. Determine the amount of the cost of goods sold and the ending inventory for 20X1 using the FIFO inventory valuation method. b. Determine the amount of the cost of goods sold and the ending inventory for 20X1 using the LIFO inventory valuation method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
4
Transcribed Image Text:4. Xu Company began business on January 1, 20X1. During 20X1 the firm made the following purchases:
20X1:
January 7
February 9
April 29
July 21
September 4
November 12
150 units @ $4.00
100 units @ $4.20
250 units @ $4.40
200 units @ $4.40
160 units @ $4.50
140 units @ $4.60
During 20X1 the firm sold 720 units. Assume Xu Company uses a periodic inventory system.
Required
a. Determine the amount of the cost of goods sold and the ending inventory for 20X1 using the FIFO
inventory valuation method.
b. Determine the amount of the cost of goods sold and the ending inventory for 20X1 using the LIFO
inventory valuation method.
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