PRACTICE - COSTING METHODS In January, inventory has the following changes: 1. Jan 1: Beginning balance is $20,000 (1,000 units at a unit cost of $20) 2. Jan 4: Sold 700 units for $30/ unit 3. Jan 10: Purchased 500 units at a unit cost of $22.40 4. Jan 22: Sold 360 units for $30/ unit 5. Jan 28: Sold 240 units for $30/ unit 6. Jan 30: Purchased 600 units at a unit cost of $23.30 Question: Assuming a perpetual inventory system, calculate cost of goods sold and ending balance of inventory under: 1. FIFO costing method 2. LIFO costing method 3. AVCO costing method Journalize transactions under different costing methods
PRACTICE - COSTING METHODS In January, inventory has the following changes: 1. Jan 1: Beginning balance is $20,000 (1,000 units at a unit cost of $20) 2. Jan 4: Sold 700 units for $30/ unit 3. Jan 10: Purchased 500 units at a unit cost of $22.40 4. Jan 22: Sold 360 units for $30/ unit 5. Jan 28: Sold 240 units for $30/ unit 6. Jan 30: Purchased 600 units at a unit cost of $23.30 Question: Assuming a perpetual inventory system, calculate cost of goods sold and ending balance of inventory under: 1. FIFO costing method 2. LIFO costing method 3. AVCO costing method Journalize transactions under different costing methods
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:PRACTICE
In January, inventory has the following changes:
1. Jan 1: Beginning balance is $20,000 (1,000 units at a unit cost of $20)
2. Jan 4: Sold 700 units for $30/ unit
- COSTING METHODS
3. Jan 10: Purchased 500 units at a unit cost of $22.40
4. Jan 22: Sold 360 units for $30/ unit
5. Jan 28: Sold 240 units for $30/ unit
6. Jan 30: Purchased 600 units at a unit cost of $23.30
Question: Assuming a perpetual inventory system, calculate cost of goods
sold and ending balance of inventory under:
1. FIFO costing method
2. LIFO costing method
3. AVCO costing method
Journalize transactions under different costing methods
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