Compute ending inventory and cost of goods sold under FIFO, assuming Cullumber Company uses the periodic inventory system. Ending inventory Cost of goods sold $ Compute ending inventory and cost of goods sold under LIFO, assuming Cullumber Company uses the periodic inventory system. Ending inventory $ Cost of goods sold $

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Compute ending inventory and cost of goods sold under FIFO, assuming Cullumber Company uses the periodic inventory system.
Ending inventory $
69
Cost of goods sold $
69
Compute ending inventory and cost of goods sold under LIFO, assuming Cullumber Company uses the periodic inventory system.
Cost of goods sold
Ending inventory $
$
69
Transcribed Image Text:Compute ending inventory and cost of goods sold under FIFO, assuming Cullumber Company uses the periodic inventory system. Ending inventory $ 69 Cost of goods sold $ 69 Compute ending inventory and cost of goods sold under LIFO, assuming Cullumber Company uses the periodic inventory system. Cost of goods sold Ending inventory $ $ 69
On December 1, 2025, Cullumber Company had the account balances shown below.
Cash
Accounts Receivable
Inventory
Equipment
Inventory =(3,000 × $0.60)
The following transactions occurred during December.
Dec. 3
1.
2.
5
7
3
17
Adjustment data:
22
Debit
$4,680 Accumulated Depreciation-Equipment
4,070
Accounts Payable
1,800
Common Stock
22,400
Retained Earnings
$32,950
Purchased 4,000 units of inventory on account at a cost of $0.77 per unit.
Sold 4,400 units of inventory on account for $0.90 per unit. (Cullumber sold 3,000 of the $0.60 units and 1,400 of the $0.77 units.)
Granted the December 5 customer $180 credit for 200 units of inventory returned costing $154. These units were returned to inventory.
Purchased 1,900 units of inventory for cash at $0.90 each.
Sold 1,700 units of inventory on account for $1.04 per unit. (Cullumber sold 1,700 of the $0.77 units.)
Credit
$1,610
2,900
9,400
19,040
$32,950
Accrued salaries and wages payable $360.
Depreciation on equipment $200 per month.
Income tax expense was $240 to be paid next year
Transcribed Image Text:On December 1, 2025, Cullumber Company had the account balances shown below. Cash Accounts Receivable Inventory Equipment Inventory =(3,000 × $0.60) The following transactions occurred during December. Dec. 3 1. 2. 5 7 3 17 Adjustment data: 22 Debit $4,680 Accumulated Depreciation-Equipment 4,070 Accounts Payable 1,800 Common Stock 22,400 Retained Earnings $32,950 Purchased 4,000 units of inventory on account at a cost of $0.77 per unit. Sold 4,400 units of inventory on account for $0.90 per unit. (Cullumber sold 3,000 of the $0.60 units and 1,400 of the $0.77 units.) Granted the December 5 customer $180 credit for 200 units of inventory returned costing $154. These units were returned to inventory. Purchased 1,900 units of inventory for cash at $0.90 each. Sold 1,700 units of inventory on account for $1.04 per unit. (Cullumber sold 1,700 of the $0.77 units.) Credit $1,610 2,900 9,400 19,040 $32,950 Accrued salaries and wages payable $360. Depreciation on equipment $200 per month. Income tax expense was $240 to be paid next year
Expert Solution
Step 1 Introduction

Under FIFO method First stock came will be sold first and under LIFO method Last stock came will be sold first for Valuation of Inventory.

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