Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:| Item | Units | Unit Cost ||------|-------|-----------|| Inventory, December 31, prior year | 1,900 | $7 || **For the current year:** | | || Purchase, March 21 | 6,120 | $6 || Purchase, August 1 | 4,060 | $4 || Inventory, December 31, current year | 2,900 | |**Required:**Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.**Note:** Round "Average cost per unit" to 4 decimal places and final answers to nearest whole dollar amount.The table below is used to record your calculations:| | FIFO | LIFO | Average Cost ||-----------|------|------|--------------|| Ending inventory | | | || Cost of goods sold | | | |

Name: Hamilton Company uses a periodic inventory system. At the end of the
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Description: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:| Item | Units | Unit Cost ||------|-------|-----

FIFO (First-In, First-Out) method: In FIFO, you sell the oldest inventory items before the newer…

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Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Ending inventory Cost of goods sold Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 4 decimal places and final answers to nearest whole dollar amount. FIFO Units LIFO 1,900 Unit Cost $7 6,120 6 4,060 4 2,900 Average Cost

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Ending inventory Cost of goods sold Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 4 decimal places and final answers to nearest whole dollar amount. FIFO Units LIFO 1,900 Unit Cost $7 6,120 6 4,060 4 2,900 Average Cost

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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Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Ending inventory Cost of goods sold Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Compute ending Inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. Average Cost FIFO Units 2,000 LIFO Unit Cost $5 4 6,000 4,000 3,000