Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 250 units at $46 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 310-unit purchase at $51 per unit; the second was a 380-unit purchase at $53 per unit. During the period, it sold 590 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO. b. LIFO. c. Weighted average. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.
Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 250 units at $46 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 310-unit purchase at $51 per unit; the second was a 380-unit purchase at $53 per unit. During the period, it sold 590 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO. b. LIFO. c. Weighted average. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am.202.
Transcribed Image Text:Cortez Company sells chairs that are used at computer stations. Its beginning
inventory of chairs was 250 units at $46 per unit. During the year, Cortez
made two batch purchases of this chair. The first was a 310-unit purchase at
$51 per unit; the second was a 380-unit purchase at $53 per unit. During the
period, it sold 590 chairs.
Required
Determine the amount of product costs that would be allocated to cost of
goods sold and ending inventory, assuming that Cortez uses
a. FIFO.
b. LIFO.
c. Weighted average.
Do not round intermediate calculations. Round your final answers to
nearest whole dollar amount.
Answer is complete but not entirely correct.
Weighted
Average
$ 29,644 X
$ 17,556
Cost of goods sold
Ending inventory
FIFO
$
28,840
$1,530
LIFO
$ 30,850
$ 9,150
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