Refer to the "Compare" page. Calculate the sum of cost of goods sold and ending inventory balances under each of the four inventory cost flow assumptions. Explain the results. 3. COGS plus ending inventory
Refer to the "Compare" page. Calculate the sum of cost of goods sold and ending inventory balances under each of the four inventory cost flow assumptions. Explain the results. 3. COGS plus ending inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Refer to the "Compare" page. Calculate the sum of cost of goods sold and ending inventory balances under each of the four inventory cost flow assumptions. Explain the results. |
3. COGS plus ending inventory | |||||||||
FIFO | Spec. Ident. | Wtd. Avg. | |||||||
LIFO | |||||||||
COGS | |||||||||
Ending Inv. | |||||||||
Total | |||||||||
Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2019, the number of gadgets purchased and sold was as follows: | ||||||||||
Purchased | Sold | Balance in inventory | ||||||||
Date | Units | Unit cost | Total $ | Units | Unit cost | Total $ | Units | Unit cost | Total $ | |
Jan. 1 | 200 | $2 | ||||||||
3 | 400 | $3 | ||||||||
8 | 400 | $5 | ||||||||
10 | 700 | * | ||||||||
15 | 300 | $7 | ||||||||
20 | 300 | ** | ||||||||
27 | 400 | $7 | ||||||||
Units were sold for the following amount: | ||||||||||
June 10 | 10 | $11 | ||||||||
June 27 | 20 | $12 | ||||||||
*for specific identification, units sold on June 10 came from: | ||||||||||
Opening inventory | 0 | |||||||||
Jan. 3 purchase | 380 | |||||||||
Jan. 8 purchase | 320 | |||||||||
700 | ||||||||||
**for specific identification, units sold on June 20 came from: | ||||||||||
Opening inventory | 0 | |||||||||
Jan. 3 purchase | 0 | |||||||||
Jan. 8 purchase | 60 | |||||||||
Jan. 15 purchase | 240 | |||||||||
300 | ||||||||||
Required: | ||||||||||
1 | Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: | |||||||||
a. FIFO |
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