Paddington Gifts made purchases of a particular product in the current year as follows: Jan. 1 Beginning inventory Mar. 7 Purchased July 28 Purchased Oct. 3 Purchased Totals 280 units @ $6.40 540 units $ 6.00 @ $5.40 860 units @ $4.80 = 2,780 units 1,100 units = $ 1,792 @ = = 3,240 5,940 4,128 $ 15,100 1. The business uses a periodic inventory system. Ending inventory consists of 130 units. Calculate the costs to be assign ending inventory and to goods sold under: (Round intermediate calculations and final answers to 2 decimal places for average cost".) 2. Which method provides the lower profit? multiple choice
Paddington Gifts made purchases of a particular product in the current year as follows: Jan. 1 Beginning inventory Mar. 7 Purchased July 28 Purchased Oct. 3 Purchased Totals 280 units @ $6.40 540 units $ 6.00 @ $5.40 860 units @ $4.80 = 2,780 units 1,100 units = $ 1,792 @ = = 3,240 5,940 4,128 $ 15,100 1. The business uses a periodic inventory system. Ending inventory consists of 130 units. Calculate the costs to be assign ending inventory and to goods sold under: (Round intermediate calculations and final answers to 2 decimal places for average cost".) 2. Which method provides the lower profit? multiple choice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Paddington Gifts made purchases of a particular product in the current year as follows:
Jan. 1 Beginning inventory
Mar. 7 Purchased
July 28
Oct. 3
Purchased
Purchased
FIFO
Totals
280 units @ $6.40
@ $6.00
1,100 units @ $5.40
860 units @ $ 4.80
540
units
2,780 units
= $ 1,792
=
=
=
3,240
5,940
4,128
$ 15,100
1. The business uses a periodic inventory system. Ending inventory consists of 130 units. Calculate the costs to be assigned to the
ending inventory and to goods sold under: (Round intermediate calculations and final answers to 2 decimal places for "Weighted
average cost".)
2. Which method provides the lower profit?
multiple choice
Weighted-average cost
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