Cost flow assumptions-FIFO, LIFO, and weighted average using a peri- odic system The following data are available for Sellco for the fiscal year ended on January 31, 2023: Sales... Beginning inventory.. Purchases, in chronological order 1,600 units 500 units @ $4 600 units @ $5 800 units @ $6 500 units @ $8 Required: a. Calculate cost of goods sold and ending inventory under the following cost flow assumptions (using a periodic inventory system): 1. FIFO. 2. LIFO. 3. Weighted average. Round the unit cost answer to two decimal places and ending inventory to the nearest $10. b. Assume that net income using the weighted-average cost flow assumption is $80.000. Calculate net income under FIFO and LIFO.
Cost flow assumptions-FIFO, LIFO, and weighted average using a peri- odic system The following data are available for Sellco for the fiscal year ended on January 31, 2023: Sales... Beginning inventory.. Purchases, in chronological order 1,600 units 500 units @ $4 600 units @ $5 800 units @ $6 500 units @ $8 Required: a. Calculate cost of goods sold and ending inventory under the following cost flow assumptions (using a periodic inventory system): 1. FIFO. 2. LIFO. 3. Weighted average. Round the unit cost answer to two decimal places and ending inventory to the nearest $10. b. Assume that net income using the weighted-average cost flow assumption is $80.000. Calculate net income under FIFO and LIFO.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Cost flow assumptions-FIFO, LIFO, and weighted average using a peri-
odic system The following data are available for Sellco for the fiscal year ended on
January 31, 2023:
Sales..
Beginning inventory..
Purchases, in chronological order
1,600 units
500 units @ $4
600 units @ $5
800 units @ $6
500 units @ $8
Required:
a. Calculate cost of goods sold and ending inventory under the following cost flow
assumptions (using a periodic inventory system):
1. FIFO.
2. LIFO.
3. Weighted average. Round the unit cost answer to two decimal places and
ending inventory to the nearest $10.
b. Assume that net income using the weighted-average cost flow assumption is
$80,000. Calculate net income under FIFO and LIFO.
Problem 5.34
Lo 5-7,5-8
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