Montana Cycles started July with 25 bicycles that cost $36 each. On July 16, Montana bought 35 bicycles at $60 each. On July 31, when the average cost per unit was $50.00, Montana sold 33 bicycles for $105 each. Montana's cost of goods sold under the FIFO, LIFO and weighted-average methods is summarized as follows: FIFO LIFO Weighted-average Cost of Goods Sold $ 1,380 2$ 1,980 2$ 1,650 Requirements 1. Which inventory costing method produced the lowest cost of goods sold? 2. Which inventory costing method produced the highest cost of goods sold? 3. If costs had been declining instead of rising, which inventory costing method would have produced the highest cost of goods sold? Requirement 1. Which inventory costing method produced the lowest cost of goods sold? The V inventory costing method produced the lowest cost of goods sold.

Montana Cycles started July with 25 bicycles that cost $36 each. On July 16, Montana bought 35 bicycles at $60 each. On July 31, when the average cost per unit was $50.00, Montana sold 33 bicycles for $105 each. Montana's cost of goods sold under the FIFO, LIFO and weighted-average methods is summarized as follows: FIFO LIFO Weighted-average Cost of Goods Sold $ 1,380 2$ 1,980 2$ 1,650 Requirements 1. Which inventory costing method produced the lowest cost of goods sold? 2. Which inventory costing method produced the highest cost of goods sold? 3. If costs had been declining instead of rising, which inventory costing method would have produced the highest cost of goods sold? Requirement 1. Which inventory costing method produced the lowest cost of goods sold? The V inventory costing method produced the lowest cost of goods sold.

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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