Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2019, the number of gadgets purchased and sold was as follows: Purchased Sold Balance in inventory Date Units Unit cost Total $ Units Unit cost Total $ Units Unit cost Total $ Jan. 1 200 $2 3 400 $3 8 400 $5 10 700 * 15 300 $7 20 300 ** 27 400 $7 Units were sold for the following amount: June 10 10 $11 June 27 20 $12 *for specific identification, units sold on June 10 came from: Opening inventory 0 Jan. 3 purchase 380 Jan. 8 purchase 320 700 **for specific identification, units sold on June 20 came from: Opening inventory 0 Jan. 3 purchase 0 Jan. 8 purchase 60 Jan. 15 purchase 240 300 1 Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: b. LIFO

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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Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2019, the number of gadgets purchased and sold was as follows:

	Purchased	Sold	Balance in inventory
Date	Units	Unit cost	Total $	Units		Unit cost	Total $	Units	Unit cost	Total $
Jan. 1								200	$2
3	400	$3
8	400	$5
10				700	*
15	300	$7
20				300	**
27	400	$7

Units were sold for the following amount:
	June 10	10	$11
	June 27	20	$12

*for specific identification, units sold on June 10 came from:
	Opening inventory		0
Jan. 3 purchase	380
Jan. 8 purchase	320
			700

**for specific identification, units sold on June 20 came from:
Opening inventory	0
Jan. 3 purchase	0
Jan. 8 purchase	60
Jan. 15 purchase	240
			300

Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions:

b. LIFO

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