Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. Assume Oahu Kiki's records show the following for the month of January. The company sold 240 units between January 16 and 23. Beginning Inventory Purchase Purchase Required: Date January 1 January 15 Units 120 380 Unit Cost $ 80 Total Cost $ 9,600 90 34,200 January 24 200 110 22,000 Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. Assume Oahu Kiki's records show the following for the month of January. The company sold 240 units between January 16 and 23. Beginning Inventory Purchase Purchase Required: Date January 1 January 15 Units 120 380 Unit Cost $ 80 Total Cost $ 9,600 90 34,200 January 24 200 110 22,000 Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.

Name: Haresh Oahu Kiki tracks the number of units purchased and sold through
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Description: Haresh Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing methodperpetually at the time of each sale, as if it uses perpetual inventory system. Assume Oahu Kiki's records show t

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Haresh

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method
perpetually at the time of each sale, as if it uses perpetual inventory system. Assume Oahu Kiki's records show the following for the
month of January. The company sold 240 units between January 16 and 23.
Beginning Inventory.
Purchase
Purchase
Required:
Date
January 1
January 15
Units
120
Unit Cost
$ 80
Total Cost
$ 9,600
380
90
January 24
200
110
34,200
22,000
Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.
FIFO
LIFO
Cost of Ending Inventory
$
45,400
Cost of Goods Sold
$
20,400

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