Review ScoreReview Results by StudyObjectiveKeaton Accessories uses a perpetual inventory system. The company's beginning inventory of a particularproduct and its purchases during the month of January were as follows:QuantityUnit CostTotal CostBeginning Inventory (Jan. 1)180$40$7,200Purchase (Jan. 9)90454,050Purchase (Jan. 21)90464,140Total360$15,390On January 24, Keaton sold 200 units of this product. The other 160 units remain in inventory at January 31.i.) Determine the cost of goods sold using each of the following flow assumptions:LIFOFIFOAverage Costii.) Determine the cost of the 160 units in inventory at January 31 using each of the following flowassumptions:LIFOFIFOAverage Cost********x********

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Answered: i.) Determine the cost of goods sold…

Business

Accounting

i.) Determine the cost of goods sold using each of the following flow assumptions:

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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Question

Review Score
Review Results by Study
Objective
Keaton Accessories uses a perpetual inventory system. The company's beginning inventory of a particular
product and its purchases during the month of January were as follows:
Quantity
Unit Cost
Total Cost
Beginning Inventory (Jan. 1)
180
$40
$7,200
Purchase (Jan. 9)
90
45
4,050
Purchase (Jan. 21)
90
46
4,140
Total
360
$15,390
On January 24, Keaton sold 200 units of this product. The other 160 units remain in inventory at January 31.
i.) Determine the cost of goods sold using each of the following flow assumptions:
LIFO
FIFO
Average Cost
ii.) Determine the cost of the 160 units in inventory at January 31 using each of the following flow
assumptions:
LIFO
FIFO
Average Cost
*****
***
x****
****

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Table 1 - LIFO Method

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