Erie Jewelers sells gold earrings. Its beginning inventory Model 407 gold earrings consisted of 150 pairs of earrings at $50 per pair. Erie purchased two batches of Model 407 earrings during the year. The first batch purchased consisted of 125 pairs at $53 per pair; the second batch consisted of 195 pairs at $56 per pair. During the year, Erie sold 365 pairs of Model 407 earrings. Required Determine the amount of product cost Erie would allocate to cost of goods sold and ending inventory assuming that Erie uses (a) FIFO, (b) LIFO, and (c) weighted average.

Erie Jewelers sells gold earrings. Its beginning inventory Model 407 gold earrings consisted of 150 pairs of earrings at $50 per pair. Erie purchased two batches of Model 407 earrings during the year. The first batch purchased consisted of 125 pairs at $53 per pair; the second batch consisted of 195 pairs at $56 per pair. During the year, Erie sold 365 pairs of Model 407 earrings. Required Determine the amount of product cost Erie would allocate to cost of goods sold and ending inventory assuming that Erie uses (a) FIFO, (b) LIFO, and (c) weighted average.

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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