Ivanhoe Company had a beginning inventory of 108 units of Product RST at a cost of $8 per unit. During the year, purchases were: Feb. 20 640 units at $9 Aug. 12 377 units at $11 May 5 540 units at $10 Dec. 8 91 units at $12 Ivanhoe Company uses a periodic inventory system. Sales totaled 1,590 units. (a) Determine the cost of goods available for sale. 17,263 $ (b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.) 9.830 $ Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 150.) FIFO LIFO AVERAGE-COST The ending inventory $ $ $ The cost of goods sold $ $ $ Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?
Ivanhoe Company had a beginning inventory of 108 units of Product RST at a cost of $8 per unit. During the year, purchases were: Feb. 20 640 units at $9 Aug. 12 377 units at $11 May 5 540 units at $10 Dec. 8 91 units at $12 Ivanhoe Company uses a periodic inventory system. Sales totaled 1,590 units. (a) Determine the cost of goods available for sale. 17,263 $ (b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.) 9.830 $ Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 150.) FIFO LIFO AVERAGE-COST The ending inventory $ $ $ The cost of goods sold $ $ $ Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Ivanhoe Company had a beginning inventory of 108 units of Product RST at a cost of $8 per unit. During the year, purchases were:
Ivanhoe Company uses a periodic inventory system. Sales totaled 1,590 units.
| Feb. 20 | 640 | units at | $9 | Aug. 12 | 377 | units at | $11 | |||||||
| May 5 | 540 | units at | $10 | Dec. 8 | 91 | units at | $12 |
Ivanhoe Company uses a periodic inventory system. Sales totaled 1,590 units.
(a) Determine the cost of goods available for sale.
(b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.)
| 17,263 | $ |
(b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.)
| 9.830 | $ |
Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 150.)
|
FIFO
|
LIFO
|
AVERAGE-COST
|
||||
| The ending inventory | $ | $ | $ | |||
| The cost of goods sold | $ | $ | $ |
Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?
| results in the lowest inventory amount for the balance sheet. |
| results in the lowest cost of goods sold for the income statement. |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education