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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Can you please explain how to get the Cost of Goods Solds category using LIFO?
Haresh
Gladstone Limited tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Sale, March 14 ($12 each) c. Purchase, May 1 d. Sale, August 31 ($12 each) Required: Units 1,900 Unit Cost $ 4.00 2,500 6.00 (1,700) 1,200 (1,900) 8.00 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31, under each of the following inventory costing methods. For Specific identification, assuming that the March 14, sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31, was selected from the remainder of the beginning…
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