Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 230 units at $45 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 265-unit purchase at $50 per unit; the second was a 360-unit purchase at $52 per unit. During the period, it sold 535 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses FIFO. LIFO. Weighted average.
Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 230 units at $45 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 265-unit purchase at $50 per unit; the second was a 360-unit purchase at $52 per unit. During the period, it sold 535 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses FIFO. LIFO. Weighted average.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 230 units at $45 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 265-unit purchase at $50 per unit; the second was a 360-unit purchase at $52 per unit. During the period, it sold 535 chairs.
Required
Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses
- FIFO.
- LIFO.
- Weighted average.
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