Hello, need your kind assistance with the following question AL Fanar company uses aperiodic inventory system. The beginning balance of inventory and the purchases made by AL Fanar during the month of December are given below:DateDescriptionUnitsUnit costTotal costDecember 01Beginning inventory100 $10$ 1,000December 20Inventory purchased1000 $ 15 $ 15,000December 25Inventory purchased500$ 25 $ 12,500 Total——- ———— 1,600 $ 28,500 ——- ————The AL Fanar Company sold 1,300 units during the month of December.Required: Compute inventory on 31st December and cost of goods sold for the month of December using following inventory costing methods:First in, first out (FIFO) methodLast in, first out (LIFO) methodAverage cost method

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Description: Hello, need your kind assistance with the following question AL Fanar company uses aperiodic inventory system. The beginning balance of inventory and the purchases made by AL Fanar during the month of December are given below:DateDescriptionUnitsUni

First in, First out (FIFO) method - As per FIFO, goods purchased first will be sold first which…

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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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Hello, need your kind assistance with the following question

AL Fanar company uses aperiodic inventory system. The beginning balance of inventory and the purchases made by AL Fanar during the month of December are given below:

Date	Description	Units	Unit cost	Total cost
December 01	Beginning inventory	100	$10	$ 1,000
December 20	Inventory purchased	1000	$ 15	$ 15,000
December 25	Inventory purchased	500	$ 25	$ 12,500
	Total	——-		————
		1,600		$ 28,500
		——-		————

The AL Fanar Company sold 1,300 units during the month of December.

Required: Compute inventory on 31st December and cost of goods sold for the month of December using following inventory costing methods:

First in, first out (FIFO) method
Last in, first out (LIFO) method
Average cost method

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