Assume the following data with regard to inventory for Caciato Company: Aug. 1 Inventory 40 units @ $10 per unit $ 400 8 Purchase 50 units @ $11 per unit 550 22 Purchase 35 units @ $12 per unit 420 Goods available for sale 125 units $1,370 Aug. 15 Sale 45 units 28 Sale 25 units Inventory, Aug. 31 55 units Calculate the cost of ending inventory and cost of goods sold according to the: a) Specific Identification Method (Assuming that the inventory consists of 30 units from the August 8 purchase and 25 units from the purchase of August 22) b) Average-Cost Method c) FIFO Method d) LIFO Method
Assume the following data with regard to inventory for Caciato Company: Aug. 1 Inventory 40 units @ $10 per unit $ 400 8 Purchase 50 units @ $11 per unit 550 22 Purchase 35 units @ $12 per unit 420 Goods available for sale 125 units $1,370 Aug. 15 Sale 45 units 28 Sale 25 units Inventory, Aug. 31 55 units Calculate the cost of ending inventory and cost of goods sold according to the: a) Specific Identification Method (Assuming that the inventory consists of 30 units from the August 8 purchase and 25 units from the purchase of August 22) b) Average-Cost Method c) FIFO Method d) LIFO Method
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Solve B,C,D.
Transcribed Image Text:Assume the following data with regard to inventory for Caciato
Company:
Aug. 1 Inventory 40 units @ $10 per unit $ 400
8 Purchase 50 units @ $11 per unit 550
22 Purchase 35 units @ $12 per unit 420
Goods available for sale 125 units $1,370
Aug. 15 Sale 45 units
28 Sale 25 units
Inventory, Aug. 31 55 units
Calculate the cost of ending inventory and cost of goods sold
according to the:
a) Specific Identification Method (Assuming that the inventory
consists of 30 units from the August 8 purchase and 25 units
from the purchase of August 22)
b) Average-Cost Method
c) FIFO Method
d) LIFO Method
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