Oriole Company Inc. had a beginning inventory of 105 units of Product RST at a cost of $7 per unit. During the year, purchases were: Feb. 20 595 units at $8 Aug. 12 410 units at $10 May 5 500 units at $9 Dec. 8 100 units at $11 Oriole Company uses a periodic inventory system. Sales totaled 1,485 units. (a) Your answer is correct. Determine the cost of goods available for sale. The cost of goods available for sale (b1) eTextbook and Medla 15,195 Your Answer Correct Answer (Used) Calculate average cost per unit. (Round answer to 3 decimal places, e.g. 2.237.) Average cost per unit $ (62) Your answer is correct. 8.886 Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round per unit cost to 3 decimal places, eg. 15.647 and final answers to O decimal places, e.g. 5,125.) The ending inventory FIFO 2,350 The cost of goods sold 12,845 eTextbook and Medla LIFO 1,695 13,500 AVERAGE-COST 1,999 13,196 (c) Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement? (1) (2) ✓ results in the lowest inventory amount for the balance sheet, $ results in the lowest cost of goods sold for the income statement, $
Oriole Company Inc. had a beginning inventory of 105 units of Product RST at a cost of $7 per unit. During the year, purchases were: Feb. 20 595 units at $8 Aug. 12 410 units at $10 May 5 500 units at $9 Dec. 8 100 units at $11 Oriole Company uses a periodic inventory system. Sales totaled 1,485 units. (a) Your answer is correct. Determine the cost of goods available for sale. The cost of goods available for sale (b1) eTextbook and Medla 15,195 Your Answer Correct Answer (Used) Calculate average cost per unit. (Round answer to 3 decimal places, e.g. 2.237.) Average cost per unit $ (62) Your answer is correct. 8.886 Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round per unit cost to 3 decimal places, eg. 15.647 and final answers to O decimal places, e.g. 5,125.) The ending inventory FIFO 2,350 The cost of goods sold 12,845 eTextbook and Medla LIFO 1,695 13,500 AVERAGE-COST 1,999 13,196 (c) Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement? (1) (2) ✓ results in the lowest inventory amount for the balance sheet, $ results in the lowest cost of goods sold for the income statement, $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Oriole Company Inc. had a beginning inventory of 105 units of Product RST at a cost of $7 per unit. During the year, purchases were:
Feb. 20
595 units
at
$8
Aug. 12
410 units
at
$10
May 5
500 units at
$9
Dec. 8
100 units
at
$11
Oriole Company uses a periodic inventory system. Sales totaled 1,485 units.
(a)
Your answer is correct.
Determine the cost of goods available for sale.
The cost of goods available for sale
(b1)
eTextbook and Medla
15,195
Your Answer Correct Answer (Used)
Calculate average cost per unit. (Round answer to 3 decimal places, e.g. 2.237.)
Average cost per unit
$
(62)
Your answer is correct.
8.886
Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round per unit cost to 3 decimal places, eg. 15.647 and final answers to O decimal places, e.g. 5,125.)
The ending inventory
FIFO
2,350
The cost of goods sold
12,845
eTextbook and Medla
LIFO
1,695
13,500
AVERAGE-COST
1,999
13,196
(c)
Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?
(1)
(2)
✓ results in the lowest inventory amount for the balance sheet, $
results in the lowest cost of goods sold for the income statement, $
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