During October 2018, the following changes in inventory item F555 took place: Date October, 1. 12 23 9 11 29 Explanation Balance Purchased Purchased Sold Sold Sold Units 1600 900 600 400 1000 400 Unit Cost 10 USD 12 USD 14 USD Perpetual inventories are maintained. Required: 1- What is the cost of the ending inventory for item F555 under the following methods? (Show calculations.) a. FIFO. b. LIFO. 2- Calculate the cost of goods sold and gross profit earned by the business under each method, if the units sold at price of $22?
During October 2018, the following changes in inventory item F555 took place: Date October, 1. 12 23 9 11 29 Explanation Balance Purchased Purchased Sold Sold Sold Units 1600 900 600 400 1000 400 Unit Cost 10 USD 12 USD 14 USD Perpetual inventories are maintained. Required: 1- What is the cost of the ending inventory for item F555 under the following methods? (Show calculations.) a. FIFO. b. LIFO. 2- Calculate the cost of goods sold and gross profit earned by the business under each method, if the units sold at price of $22?
Chapter1: Financial Statements And Business Decisions
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![During October 2018, the following changes in inventory item F555 took place:
Date
October, 1
12
23
9
11
29
Explanation
a. FIFO.
b. LIFO.
Balance
Purchased
Purchased
Sold
Sold
Sold
Units
1600
900
600
400
1000
400
Unit Cost
10 USD
12 USD
14 USD
Perpetual inventories are maintained.
Required:
1- What is the cost of the ending inventory for item F555 under the following methods?
(Show calculations.)
2- Calculate the cost of goods sold and gross profit earned by the business under each method, if the
units sold at price of $22?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa53a9a99-75b6-411c-b6db-7002448aaf26%2Fbfa668ba-7842-4c98-82d7-9e85e3c1f6ce%2F6c2zgvr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:During October 2018, the following changes in inventory item F555 took place:
Date
October, 1
12
23
9
11
29
Explanation
a. FIFO.
b. LIFO.
Balance
Purchased
Purchased
Sold
Sold
Sold
Units
1600
900
600
400
1000
400
Unit Cost
10 USD
12 USD
14 USD
Perpetual inventories are maintained.
Required:
1- What is the cost of the ending inventory for item F555 under the following methods?
(Show calculations.)
2- Calculate the cost of goods sold and gross profit earned by the business under each method, if the
units sold at price of $22?
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