Inventory Cost Flow Crystal Apple Sales Company began 2021 with cash of $2,000, inventory of $3,600 (200 crystal apples that cost $18 each), $2,500 of common stock, and $3,100 of retained earnings. The following events occurred during 2021. Remember you may have information you do not need. Read the requirements. Crystal Apple purchased additional inventory twice during 2021. The first purchase consisted of 800 apples that cost $20 each, and the second consisted of 1,200 apples that cost $24 each. The purchases were on account. The company sold 2,040 apples for cash at a selling price of $40 each. Required Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average.
Inventory Cost Flow Crystal Apple Sales Company began 2021 with cash of $2,000, inventory of $3,600 (200 crystal apples that cost $18 each), $2,500 of common stock, and $3,100 of retained earnings. The following events occurred during 2021. Remember you may have information you do not need. Read the requirements. Crystal Apple purchased additional inventory twice during 2021. The first purchase consisted of 800 apples that cost $20 each, and the second consisted of 1,200 apples that cost $24 each. The purchases were on account. The company sold 2,040 apples for cash at a selling price of $40 each. Required Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Inventory Cost Flow
Crystal Apple Sales Company began 2021 with cash of $2,000, inventory of $3,600 (200 crystal apples that cost $18 each), $2,500 of common stock, and $3,100 of
- Crystal Apple purchased additional inventory twice during 2021. The first purchase consisted of 800 apples that cost $20 each, and the second consisted of 1,200 apples that cost $24 each. The purchases were on account.
- The company sold 2,040 apples for cash at a selling price of $40 each.
Required
Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average.
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