P6.3A (LO 2) Financial Statement Sekhon Company had a beginning inventory on January 1 of 160units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made.Mar. 15 400 units at $23July 20 250 units at $241,000 units were sold. Sekhon Company uses a periodic inventory system.Instructionsa. Determine the cost of goods available for sale.b. Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed costflow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold underthe FIFO and LIFO methods.Sept. 4 330 units at $26Dec. 2 100 units at $29c. Which cost flow method results in (1) the highest inventory amount for the balance sheet, and(2) the highest cost of goods sold for the income statement?Determine cost of goods sold andending inventory, using FIFO, LIFO,and average-cost with analysis.b. (2) Cost of goods sold:FIFOLIFOAverage$23,340$24,840$24,097

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Description: P6.3A (LO 2) Financial Statement Sekhon Company had a beginning inventory on January 1 of 160units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made.Mar. 15 400 units at $23July 20 250 units at $241,000

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P6.3A (LO 2) Financial Statement Sekhon Company had a beginning inventory on January 1 of 160 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made. Mar. 15 400 units at $23 July 20 250 units at $24 1,000 units were sold. Sekhon Company uses a periodic inventory system. Instructions Sept. 4 Dec. 2 330 units at $26 100 units at $29

P6.3A (LO 2) Financial Statement Sekhon Company had a beginning inventory on January 1 of 160 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made. Mar. 15 400 units at $23 July 20 250 units at $24 1,000 units were sold. Sekhon Company uses a periodic inventory system. Instructions Sept. 4 Dec. 2 330 units at $26 100 units at $29

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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en H [The following information applies to the questions displayed below] A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 300 units. Ending inventory at January 31 totals 130 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 January 1 January 9 Total January Required: Assume the perpual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method January 25 Total January 25 January 26 Total January 26 Goods purchased Number of Cost per unite unit 60 at $2.70 100 at 5 284 Number of units sold 270 Units 270 60 100 30 60 Unit Cost $2.50 2.70 Perpetual EIEO: Cost of Goods Sold Cost per Cost of Goods unit Sold Inventory Balance Cost per whit Number of units 270 at 30 at 60 at $ 270 = 100 at Saved $ 270- $ 284- $ 270 $ 284 Inventory Balance 162.00 $ 162.00
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