At the beginning of the current period, Viraat Industries, which uses a periodic inventory system, has 150 units of a product with a unit cost of $480. The inventory records report the following transactions: Units Unit Cost Cost $480 $528 $570 $630 400 $72,000 Beginning Inventory Purchase #1 150 150 79,200 Purchase #2 39,900 18,900 $210,000 70 Purchase #3 30 During the current period, Viraat sells 340 units. 1) Assume Viraat uses the FIFO method. Compute the cost of goods sold for the current period and the ending inventory balance for this product. 2) Assume Viraat uses the LIFO method. Compute the cost of goods sold for the current period and the ending inventory balance for this product.
At the beginning of the current period, Viraat Industries, which uses a periodic inventory system, has 150 units of a product with a unit cost of $480. The inventory records report the following transactions: Units Unit Cost Cost $480 $528 $570 $630 400 $72,000 Beginning Inventory Purchase #1 150 150 79,200 Purchase #2 39,900 18,900 $210,000 70 Purchase #3 30 During the current period, Viraat sells 340 units. 1) Assume Viraat uses the FIFO method. Compute the cost of goods sold for the current period and the ending inventory balance for this product. 2) Assume Viraat uses the LIFO method. Compute the cost of goods sold for the current period and the ending inventory balance for this product.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:At the beginning of the current period, Viraat Industries, which uses a periodic inventory system, has 150 units
of a product with a unit cost of $480. The inventory records report the following transactions:
Units
Unit Cost
Cost
$480
$528
$570
$630
400
$72,000
Beginning Inventory
Purchase #1
150
150
79,200
Purchase #2
39,900
18,900
$210,000
70
Purchase #3
30
During the current period, Viraat sells 340 units.
1) Assume Viraat uses the FIFO method. Compute the cost of goods sold for the current period and the
ending inventory balance for this product.
2) Assume Viraat uses the LIFO method. Compute the cost of goods sold for the current period and the
ending inventory balance for this product.
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