During 2012, a company sells 200 units of inventory for $50 each. The company has the following inventory purchase transactions for 2012: Date Transaction Units Unit Cost Total Cost $1,950 3,800 2,960 Jan 1 $39 Beginning Inventory Purchase 50 May 5 Nov 3 100 38 Purchase 80 37 Actual sales by the company include its entire beginning inventory, 80 units of inventory from the May 5 purchase, and 70 units from the November 3 purchase. Required: Calculate cost of goods sold and ending inventory for 2012 assuming the company uses: a) FIFO (First in, First out) b) LIFO (Last in, First out) c) Average Cost d) Explain the impact of these different methods in the recognition of Cost of goods sold and Ending Inventory in the financial statement of the company.

During 2012, a company sells 200 units of inventory for $50 each. The company has the following inventory purchase transactions for 2012: Date Transaction Units Unit Cost Total Cost $1,950 3,800 2,960 Jan 1 $39 Beginning Inventory Purchase 50 May 5 Nov 3 100 38 Purchase 80 37 Actual sales by the company include its entire beginning inventory, 80 units of inventory from the May 5 purchase, and 70 units from the November 3 purchase. Required: Calculate cost of goods sold and ending inventory for 2012 assuming the company uses: a) FIFO (First in, First out) b) LIFO (Last in, First out) c) Average Cost d) Explain the impact of these different methods in the recognition of Cost of goods sold and Ending Inventory in the financial statement of the company.

Name: During 2012, a company sells 200 units of inventory for $50 each. The
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Description: During 2012, a company sells 200 units of inventory for $50 each. The company has the followinginventory purchase transactions for 2012:DateTransactionUnitsUnit CostTotal CostBeginning Inventory$39$1,9503,8002,960Jan 150May 5Nov 3Purchase10038Purcha

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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