Hello,This question is using a periodic inventory system. For this question, how do I determine the cost of ending inventory and cost of goods sold using: a) First in, First outb) Average costThanks Cheyenne Ltd. reports the following inventory transactions in a periodic inventory system for the month of June. A physical inventorycount determined that 1,600 units were on hand at the end of the month.DateJune 112ExplanationBeginning inventoryPurchases16 Purchases23PurchasesUnits1,5002,1004,8701,590Units Cost$5678Total Cost$7,50012,60034,09012,720 Cost of the ending inventory $Cost of goods soldLAFIFOtAtAAverage

Name: Hello,This question is using a periodic inventory system. For this que
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Description: Hello,This question is using a periodic inventory system. For this question, how do I determine the cost of ending inventory and cost of goods sold using: a) First in, First outb) Average costThanks Cheyenne Ltd. reports the following inventory trans

Answered: Cheyenne Ltd. reports the following…

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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Hello,

This question is using a periodic inventory system. For this question, how do I determine the cost of ending inventory and cost of goods sold using:

a) First in, First out

b) Average cost

Thanks

Cheyenne Ltd. reports the following inventory transactions in a periodic inventory system for the month of June. A physical inventory
count determined that 1,600 units were on hand at the end of the month.
Date
June 1
12
Explanation
Beginning inventory
Purchases
16 Purchases
23
Purchases
Units
1,500
2,100
4,870
1,590
Units Cost
$5
6
7
8
Total Cost
$7,500
12,600
34,090
12,720

Cost of the ending inventory $
Cost of goods sold
LA
FIFO
tA
tA
Average

Expert Solution

Step 1 Introduction

The inventory can be valued using various methods as LIFO, FIFO and weighted average method. Under Periodic inventory system, the cost of goods sold is adjusted at the end of accounting period.

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