Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 50 units at $106 Mar. 10 Purchase 70 units at $118 Aug. 30 Purchase 30 units at $124 Dec. 12 Purchase 50 units at $130 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculation to one decimal and final answers to the nearest whole dollar. Cost of Ending Inventory and Cost of Goods Sold Inventory Method Ending Inventory Cost of Goods Sold First-in, first-out (FIFO) $ Last-in, first-out (LIFO) Weighted average cost
Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 50 units at $106 Mar. 10 Purchase 70 units at $118 Aug. 30 Purchase 30 units at $124 Dec. 12 Purchase 50 units at $130 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculation to one decimal and final answers to the nearest whole dollar. Cost of Ending Inventory and Cost of Goods Sold Inventory Method Ending Inventory Cost of Goods Sold First-in, first-out (FIFO) $ Last-in, first-out (LIFO) Weighted average cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:**Title: Calculating Cost of Goods Sold Using Inventory Methods**
**Periodic Inventory by Three Methods: Cost of Goods Sold**
The units of an item available for sale during the year were as follows:
- **Jan. 1**: Inventory, 50 units at $106
- **Mar. 10**: Purchase, 70 units at $118
- **Aug. 30**: Purchase, 30 units at $124
- **Dec. 12**: Purchase, 50 units at $130
There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.
**Objective**: Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.
**Cost of Ending Inventory and Cost of Goods Sold**
| Inventory Method | Ending Inventory | Cost of Goods Sold |
|---------------------------|------------------|--------------------|
| First-in, first-out (FIFO) | $ | $ |
| Last-in, first-out (LIFO) | $ | $ |
| Weighted average cost | $ | $ |
This exercise will demonstrate how different inventory methods impact financial statements and can help in financial analysis and decision-making.
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