**M6-14: Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost****Objective:** Learn how to compute the cost of goods sold (COGS) and ending inventory using different inventory costing methods.**Context:**Wong Corporation reports the following beginning inventory and inventory purchases for the year:- **Inventory balance at beginning of year:** - 400 units @ $12 each = $4,800- **Inventory purchased during the year:** - 700 units @ $14 each = $9,800The total cost of goods available for sale during the year is 1,100 units, amounting to $14,600.**Task:**Wong sells 600 of its inventory units during the year. The task is to compute the cost of goods sold for the year and the inventory shown on the year-end balance sheet using the following inventory costing methods:- **a. FIFO (First In, First Out)**- **b. LIFO (Last In, First Out)**- **c. Average Cost** In applying each method, consider how the flow of costs impacts the calculation of both the cost of goods sold and the remaining inventory.

Name: **M6-14: Computing Cost of Goods Sold and Ending Inventory Under FIFO
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Description: **M6-14: Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost****Objective:** Learn how to compute the cost of goods sold (COGS) and ending inventory using different inventory costing methods.**Context:**Wong Corporat

Last in first out method is a inventory valuation technique under which the most recent purchases…

Business

Accounting

M6-14. Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost LO1 Wong Corporation reports the following beginning inventory and inventory purchases. Inventory balance at beginning of year. Inventory purchased during the year. Cost of goods available for sale during the year ... 400 units @ $12 each 700 units @ $14 each 1,100 units a. FIFO b. LIFO c. Average Cost $ 4,800 9,800 $14,600 Wong sells 600 of its inventory units during the year. Compute the cost of goods sold for the year and the inventory on the year-end balance sheet under the following inventory costing methods. Ho M

M6-14. Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost LO1 Wong Corporation reports the following beginning inventory and inventory purchases. Inventory balance at beginning of year. Inventory purchased during the year. Cost of goods available for sale during the year ... 400 units @ $12 each 700 units @ $14 each 1,100 units a. FIFO b. LIFO c. Average Cost $ 4,800 9,800 $14,600 Wong sells 600 of its inventory units during the year. Compute the cost of goods sold for the year and the inventory on the year-end balance sheet under the following inventory costing methods. Ho M

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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am.105.
Date January 1 May 5 November 3 Weighted Average Transaction Beginning inventory Purchase Purchase Cost Beginning Inventory Purchases: May 5 November 3 Total Calculate ending inventory and cost of goods sold for the year, assuming the company uses weighted-average cost. (Round your average cost per unit to 4 decimal places.) Number of units Number of Units 60 Cost of Goods Available for Sale 60 Average Cost per unit 220 140 420 Cost of Goods Available for Sale $ 220 140 420 $33,700.0000 $ Unit Cost $76 4,560 79 84 17,380 11,760 33,700 Total Cost $4,560 17,380 11,760 $33,700 Cost of Goods Sold - Weighted Average Cost Number of units sold Average Cost per Unit Cost of Goods Sold 375 $30,280.0000 $ 11,355,000.00 Ending Inventory - Weighted Average Cost Number of units in ending inventory Average Cost per unit 45 $ Ending Inventory 3,420.0000 $ 153,900.00
pp. Subject :- Accounting
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