Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston bought 40 bicycles at $68 each. On October 31, when the average cost per unit was $62.00, Boston sold 34 bicycles for $100 each. Boston's cost of goods sold under the FIFO, LIFO and weighted-average methods is summarized as follows: Read the requirements. FIFO LIFO Cost of Goods Sold $ 2,000 $ 2,312 $ Weighted-average 2,108 Requirement 1. Which inventory costing method produced the lowest cost of goods sold? The FIFO LIFO inventory costing method produced the lowest cost of goods sold. weighted-average Requirements 1. Which inventory costing method produced the lowest cost of goods sold? 2. Which inventory costing method produced the highest cost of goods sold? 3. If costs had been declining instead of rising, which inventory costing method would have produced the highest cost of goods sold? Print Done
Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston bought 40 bicycles at $68 each. On October 31, when the average cost per unit was $62.00, Boston sold 34 bicycles for $100 each. Boston's cost of goods sold under the FIFO, LIFO and weighted-average methods is summarized as follows: Read the requirements. FIFO LIFO Cost of Goods Sold $ 2,000 $ 2,312 $ Weighted-average 2,108 Requirement 1. Which inventory costing method produced the lowest cost of goods sold? The FIFO LIFO inventory costing method produced the lowest cost of goods sold. weighted-average Requirements 1. Which inventory costing method produced the lowest cost of goods sold? 2. Which inventory costing method produced the highest cost of goods sold? 3. If costs had been declining instead of rising, which inventory costing method would have produced the highest cost of goods sold? Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston bought 40 bicycles at $68 each. On October 31, when the average cost per unit was $62.00, Boston sold
34 bicycles for $100 each. Boston's cost of goods sold under the FIFO, LIFO and weighted-average methods is summarized as follows:
Read the requirements.
FIFO
LIFO
Cost of Goods Sold $
2,000
$
2,312
$
Weighted-average
2,108
Requirement 1. Which inventory costing method produced the lowest cost of goods sold?
The
FIFO
LIFO
inventory costing method produced the lowest cost of goods sold.
weighted-average
Requirements
1. Which inventory costing method produced the lowest cost of goods sold?
2. Which inventory costing method produced the highest cost of goods sold?
3. If costs had been declining instead of rising, which inventory costing method
would have produced the highest cost of goods sold?
Print
Done
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