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Leven Company uses a periodic inv Module stem. The following information for the first quarter is available for the company's merchandise inventory. A physical inventory taken on March 31 of the current year showed 900 units availa Date Units Unit Cost Beg. Inventory: Jan. 1 Purchases: 480 $9.00 Jan. 5 900 10.00 Jan. 25 720 10.50 Feb. 16 360 12.00 March 26 540 13.00

Leven Company uses a periodic inv Module stem. The following information for the first quarter is available for the company's merchandise inventory. A physical inventory taken on March 31 of the current year showed 900 units availa Date Units Unit Cost Beg. Inventory: Jan. 1 Purchases: 480 $9.00 Jan. 5 900 10.00 Jan. 25 720 10.50 Feb. 16 360 12.00 March 26 540 13.00

FINANCIAL ACCOUNTING
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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Periodic System-Calculating Ending Inventory and Cost of Sales Using Average Cost, FIFO, and LIFO Leven Company uses a periodic inv Module stem. The following information for the first quarter is available for the company's merchandise inventory. A physical inventory taken on March 31 of the current year showed 900 units available. Date Beg. Inventory: Jan. 1 Purchases: Units Unit Cost 480 $9.00 Jan. 5. 900 10.00 Jan. 25 720 10.50 Feb. 16 360 12.00 March 26 540 13.00 a. Compute ending inventory and cost of goods sold for the quarter ended March 31 using (1) Average cost method, (2) FIFO method, (3) and the LIFO method. Average Cost FIFO LIFO Analysis (3) LIFO Method •Note: Do not use negative signs with any of your answers. LIFO Method: Computation of Ending Inventory Units Cost per Unit Total Cost Jan. 1 0 x $9.00 $ 0 Jan. 5 0 x $10.00 $ 0 Jan. 25 0✓ $10.50 $ 0 Feb. 16 360 x $12.00 $ 4,3201 March 26 540 x $13.00 $ 7,020 $ 11,340 LIFO Cost of goods available for sale $ 15,840 x Ending Inventory 11,340 x Cost of goods sold $ 0 x
Transcribed Image Text:Periodic System-Calculating Ending Inventory and Cost of Sales Using Average Cost, FIFO, and LIFO Leven Company uses a periodic inv Module stem. The following information for the first quarter is available for the company's merchandise inventory. A physical inventory taken on March 31 of the current year showed 900 units available. Date Beg. Inventory: Jan. 1 Purchases: Units Unit Cost 480 $9.00 Jan. 5. 900 10.00 Jan. 25 720 10.50 Feb. 16 360 12.00 March 26 540 13.00 a. Compute ending inventory and cost of goods sold for the quarter ended March 31 using (1) Average cost method, (2) FIFO method, (3) and the LIFO method. Average Cost FIFO LIFO Analysis (3) LIFO Method •Note: Do not use negative signs with any of your answers. LIFO Method: Computation of Ending Inventory Units Cost per Unit Total Cost Jan. 1 0 x $9.00 $ 0 Jan. 5 0 x $10.00 $ 0 Jan. 25 0✓ $10.50 $ 0 Feb. 16 360 x $12.00 $ 4,3201 March 26 540 x $13.00 $ 7,020 $ 11,340 LIFO Cost of goods available for sale $ 15,840 x Ending Inventory 11,340 x Cost of goods sold $ 0 x
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