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Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston purchased 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 summarize follows: FIFO LIFO Weighted-average Cost of Goods Sold $ 2,000 $ 2,312 $ 2,108 Read the requirements. Requirement 1. Which inventory costing method produced the lowest cost of goods sold? The inventory costing method produced the lowest cost of goods sold. Requirement 2. Which inventory costing method produced the highest cost of goods sold? The inventory costing method produced the highest cost of goods sold. Requirement 3. If costs had been declining instead of rising, which inventory costing method would have produced the highest cost of goods sold? If prices had been declining instead of rising, the V method would have produced the highest cost of goods sold. 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 purchased 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 summarize follows: FIFO LIFO Weighted-average Cost of Goods Sold $ 2,000 $ 2,312 $ 2,108 Read the requirements. Requirement 1. Which inventory costing method produced the lowest cost of goods sold? The inventory costing method produced the lowest cost of goods sold. Requirement 2. Which inventory costing method produced the highest cost of goods sold? The inventory costing method produced the highest cost of goods sold. Requirement 3. If costs had been declining instead of rising, which inventory costing method would have produced the highest cost of goods sold? If prices had been declining instead of rising, the V method would have produced the highest cost of goods sold. 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

FINANCIAL ACCOUNTING
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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Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston purchased 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 summarize follows: FIFO LIFO Weighted-average Cost of Goods Sold $ 2,000 $ 2,312 $ 2,108 Read the requirements. Requirement 1. Which inventory costing method produced the lowest cost of goods sold? The inventory costing method produced the lowest cost of goods sold. Requirement 2. Which inventory costing method produced the highest cost of goods sold? The inventory costing method produced the highest cost of goods sold. Requirement 3. If costs had been declining instead of rising, which inventory costing method would have produced the highest cost of goods sold? If prices had been declining instead of rising, the V method would have produced the highest cost of goods sold. 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
Transcribed Image Text:Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston purchased 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 summarize follows: FIFO LIFO Weighted-average Cost of Goods Sold $ 2,000 $ 2,312 $ 2,108 Read the requirements. Requirement 1. Which inventory costing method produced the lowest cost of goods sold? The inventory costing method produced the lowest cost of goods sold. Requirement 2. Which inventory costing method produced the highest cost of goods sold? The inventory costing method produced the highest cost of goods sold. Requirement 3. If costs had been declining instead of rising, which inventory costing method would have produced the highest cost of goods sold? If prices had been declining instead of rising, the V method would have produced the highest cost of goods sold. 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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