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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 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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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?
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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