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Problem 3 - Calculate ending inventory and cost of goods sold Princess Company uses a periodic inventory system. The company's records for the month of February were as follows: Units Unit Cost Total Cost $120 1,260 525 Date February 1 Inventory 10 February 8 Purchase 90 February 17 Purchase 35 February 28 Purchase _ 20 $12 14 15 16 155 320 $2,225 Total | 146 units were sold in February. Purpose The purpose of this problem is to demonstrate an understanding of calculating ending inventory and cost of goods sold using different cost flow |assumptions. |Instructions After analyzing the transactions, calculate the ending inventory at February 28th and cost of goods sold using the FIFO and LIFO methods. Guidance For guidance, see the calculation examples that are provided in Chapter 6 of the textbook. Your Answers: FIFO LIFO Ending inventory at February 28th Cost of goods sold

Problem 3 - Calculate ending inventory and cost of goods sold Princess Company uses a periodic inventory system. The company's records for the month of February were as follows: Units Unit Cost Total Cost $120 1,260 525 Date February 1 Inventory 10 February 8 Purchase 90 February 17 Purchase 35 February 28 Purchase _ 20 $12 14 15 16 155 320 $2,225 Total | 146 units were sold in February. Purpose The purpose of this problem is to demonstrate an understanding of calculating ending inventory and cost of goods sold using different cost flow |assumptions. |Instructions After analyzing the transactions, calculate the ending inventory at February 28th and cost of goods sold using the FIFO and LIFO methods. Guidance For guidance, see the calculation examples that are provided in Chapter 6 of the textbook. Your Answers: FIFO LIFO Ending inventory at February 28th Cost of goods sold

FINANCIAL ACCOUNTING
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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Problem 3 - Calculate ending inventory and cost of goods sold Princess Company uses a periodic inventory system. The company's records for the month of February were as follows: Date Units Unit Cost Total Cost $12 February 1 Inventory 10 February 8 Purchase 35 $120 90 14 1,260 February 17 Purchase February 28 Purchase 155 |146 units were sold in February. 15 525 20 16 320 Total $2,225 |Рurpose The purpose of this problem is to demonstrate an understanding of calculating ending inventory and cost of goods sold using different cost flow assumptions. Instructions After analyzing the transactions, calculate the ending inventory at February 28th and cost of goods sold using the FIFO and LIFO methods. Guidance For guidance, see the calculation examples that are provided in Chapter 6 of the textbook. Your Answers: FIFO LIFO Ending inventory at February 28th Cost of goods sold
Transcribed Image Text:Problem 3 - Calculate ending inventory and cost of goods sold Princess Company uses a periodic inventory system. The company's records for the month of February were as follows: Date Units Unit Cost Total Cost $12 February 1 Inventory 10 February 8 Purchase 35 $120 90 14 1,260 February 17 Purchase February 28 Purchase 155 |146 units were sold in February. 15 525 20 16 320 Total $2,225 |Рurpose The purpose of this problem is to demonstrate an understanding of calculating ending inventory and cost of goods sold using different cost flow assumptions. Instructions After analyzing the transactions, calculate the ending inventory at February 28th and cost of goods sold using the FIFO and LIFO methods. Guidance For guidance, see the calculation examples that are provided in Chapter 6 of the textbook. Your Answers: FIFO LIFO Ending inventory at February 28th Cost of goods sold
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