Below will find inventory purchase information for the year ended 12/31/19: you 4,800 2,600 2$ 24 = 200 units @ 100 units @ 1-Jan Beg. Inventory 2$ $ 11,200 2,600 25-Feb Purchases 2$ 26 = 15-Jun Purchases 400 units @ 2$ 28 = 2$ 8,400 - 100 units @ 2$ 26 = 15-Aug Purchases 15-Oct 2$ 2$ Purchases 300 units @ 2$ 28 = 6,000 $ 35,600 15-Dec Purchases 200 units @ 2$ 30 = Cost of Goods Available for Sale 1300 A year end physical inventory indicated that there were 300 units on hand. Required: a. Use the information above to determine 2019 CGS and 12/31/19 Inventory. h. Discuss the implications of the cost flow assumptions used.
Can you assist me with FIFO, LIFO, and the Waited Average Cost?
I would love to see how you did the math when getting the cost of goods sold and the ending inventory. I am most confused about the waited average cost method. Thank you
The most common methods used to determine the cost of inventory are FIFO, LIFO, and the weighted average cost method. FIFO stands for "first in first out", and as per this method, it is assumed that the inventory that has been purchased first will be sold first. Whereas, as per the LIFO method, wherein LIFO stands for "last in first out", it is assumed that the inventory purchased last will be sold out first. Moreover, as per the weighted average method, the unit cost of inventory is determined by adding the total cost of inventory available for sale and then dividing the resultant figure by the number of units available for sale.
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