pany cost of $20 per unit. During the year, the following purchases were made: Mar. 15 July 20 Sept. 4 300 units at $24 200 units at $25 300 units at $28 Dec. 2 100 units at $30 By year end, 750 units were sold. Choi Company uses a periodic inventory system. Instructions a beginning inventory on January 1 of 100 units of Product SXL at a (a) Determine the cost of goods available for sale. (b) Determine (1) the cost of the ending inventory, and (2) the cost of goods sold under each of the three assumed cost flow methods (FIFO, weighted average, and LIFO). (c) During a period of rising prices (as is illustrated in this situation), 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?

pany cost of $20 per unit. During the year, the following purchases were made: Mar. 15 July 20 Sept. 4 300 units at $24 200 units at $25 300 units at $28 Dec. 2 100 units at $30 By year end, 750 units were sold. Choi Company uses a periodic inventory system. Instructions a beginning inventory on January 1 of 100 units of Product SXL at a (a) Determine the cost of goods available for sale. (b) Determine (1) the cost of the ending inventory, and (2) the cost of goods sold under each of the three assumed cost flow methods (FIFO, weighted average, and LIFO). (c) During a period of rising prices (as is illustrated in this situation), 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?

Name: P6-4A Choi Company had a beginning inventory on January 1 of 100 unit
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Description: P6-4A Choi Company had a beginning inventory on January 1 of 100 units of Product SXL at acost of $20 per unit. During the year, the following purchases were made:Mar. 15July 20300 units at $24200 units at $25Sept. 4300 units at $28Dec. 2100 units a

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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