!Required informationProblem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4][The following information applies to the questions displayed below.]A company began January with 8,000 units of its principal product. The cost of each unit is $8. Inventory transactions forthe month of January are as follows:Date of Purchase.January 10January 18TotalsDate of SaleJanuary 5January 12January 20Total* Includes purchase price and cost of freight.SalesUnit'sLIFOTotal6,0008,00014,000Beginning InventoryPurchases:January 10January 18Problem 8-5 (Algo) Part 2Units11,000 units were on hand at the end of the month.4,0002,0005,00011,0002. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.PurchasesUnit Cost*$910Number Cost perof units unitCost of Goods Available for SaleCost ofGoodsAvailable forSale6,000 $9.008,000 $10.0022,0008,000 $8.00 $ 64,0009$Total Cost$ 54,00080,000$ 134,00054,00080,000198,000Cost of Goods Sold - Periodic LIFONumber ofunits sold0Cost perunit$$$Cost ofGoods Sold8.00 $9.0010.00$0000Ending Inventory Periodic LIFONumber ofunits inendinginventory0Cost perunit$ 8.00 $$$EndingInventory9.0010.00$0000

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Description: !Required informationProblem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4][The following information applies to the questions displayed below.]A company began January with 8,000 units of its principal product. The cost of each unit is $8

Under LIFO (Last in, First out), units purchased last are assumed to be sold first. Ending inventory…

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A company began January with 8,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase. January 10 January 18 Totals * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales Unit's LIFO Total 6,000 8,000 14,000 Beginning Inventory Purchases: January 10 January 18 11,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 2 Units 4,000 2,000 5,000 11,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Cost of Goods Available for Sale Cost of Goods Available for Sale 64,000 Purchases Unit Cost* $9 10 Number Cost per of units unit 8,000 $8.00 6,000 $9.00 8,000 $10.00 22,000 $ $ Total Cost $ 54,000 80,000 $ 134,000 54,000 80,000 198,000 Cost of Goods Sold - Periodic LIFO Number of units sold 0 Cost per unit $ 8.00 $ 9.00 $ 10.00 Cost of Goods Sold $ $ 0 0 10 0 Ending Inventory Periodic LIFO Number of units in ending inventory 0 Cost per unit $ $ $ 8.00 9.00 10.00 Ending Inventory $ $ 0 0 0 0

A company began January with 8,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase. January 10 January 18 Totals * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales Unit's LIFO Total 6,000 8,000 14,000 Beginning Inventory Purchases: January 10 January 18 11,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 2 Units 4,000 2,000 5,000 11,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Cost of Goods Available for Sale Cost of Goods Available for Sale 64,000 Purchases Unit Cost* $9 10 Number Cost per of units unit 8,000 $8.00 6,000 $9.00 8,000 $10.00 22,000 $ $ Total Cost $ 54,000 80,000 $ 134,000 54,000 80,000 198,000 Cost of Goods Sold - Periodic LIFO Number of units sold 0 Cost per unit $ 8.00 $ 9.00 $ 10.00 Cost of Goods Sold $ $ 0 0 10 0 Ending Inventory Periodic LIFO Number of units in ending inventory 0 Cost per unit $ $ $ 8.00 9.00 10.00 Ending Inventory $ $ 0 0 0 0

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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