Please do not give solution in image format Compute the following cost of goods taking into consideration purchases, sales and returns.During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows, all sales are madeat $25 per unit.Beginning inventoryJan. 5 purchase10 sale15 purchase25 saleJan. 8The company also had returns as follows:Jan 29Units100406070502035CastperUnit$1012-Units Purchase Date13Jan 5Jan 15What was the FIFO cost of the company's January 31 inventory?What was the LIFO cost of the company's January 31 inventory?What was the weighted average cost of the company's January 31 Inventory?

There are different methods used for valuing inventory. They are FIFO,LIFO, Weighted Average…

Compute the following cost of goods taking into consideration purchases, sales and returns. During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows, all sales are made at $25 per unit. Beginning inventary Jan. 5 purchase 10 sale 15 purchase 25 sale Jan. 8 Jan 29 ÅBSERR 20 Units 100 35 40 The company also had returns as follows: 60 70 Cast per Unit $10 12 21 Units Purchase Date Jan 5 Jan 15 What was the FIFO cost of the company's January 31 inventory? What was the LIFO cost of the company's January 31 inventory? What was the weighted average cost of the company's January 31 inventory?

Compute the following cost of goods taking into consideration purchases, sales and returns. During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows, all sales are made at $25 per unit. Beginning inventary Jan. 5 purchase 10 sale 15 purchase 25 sale Jan. 8 Jan 29 ÅBSERR 20 Units 100 35 40 The company also had returns as follows: 60 70 Cast per Unit $10 12 21 Units Purchase Date Jan 5 Jan 15 What was the FIFO cost of the company's January 31 inventory? What was the LIFO cost of the company's January 31 inventory? What was the weighted average cost of the company's January 31 inventory?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 8EA: Calculate the cost of goods sold dollar value for A65 Company for the month, considering the...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Please do not give solution in image format

Compute the following cost of goods taking into consideration purchases, sales and returns.
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows, all sales are made
at $25 per unit.
Beginning inventory
Jan. 5 purchase
10 sale
15 purchase
25 sale
Jan. 8
The company also had returns as follows:
Jan 29
Units
100
40
60
70
50
20
35
Cast
per
Unit
$10
12
-
Units Purchase Date
13
Jan 5
Jan 15
What was the FIFO cost of the company's January 31 inventory?
What was the LIFO cost of the company's January 31 inventory?
What was the weighted average cost of the company's January 31 Inventory?

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Step 1: Introduction to Inventory valuation methods:

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Step 2: 1) Calculation of cost of ending inventory under FIFO method :

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Step 3: 2) Calculation of cost of ending inventory under LIFO method :

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Step 4: 3) Calculation of cost of ending inventory under Weighted average method

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