Problem 6-7AA (Algo) Periodic: Alternative cost flows LO P3Seminole Company began the year with 23,000 units of product in its January 1 inventory costing $15.60 each. It made four purchasesof its product during the year as follows. The company uses a periodic inventory system. On December 31, a physical count revealsthat 41,000 units of its product remain in inventory.March 7May 25August 1November 1034,000 units @ $18.60 each36,000 units @ $22.60 each26,000 units @ $24.60 each36,000 units @ $27.60 each.Required:1. Compute the number and total cost of the units available for sale during the year.2. Compute the amounts assigned to ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weighted average.Complete this question by entering your answers in the tabs below.Required 1Required 2Compute the number and total cost of the units available for sale during the year.Total units available for saleTotal cost of units available for saleunits< Required 1Required 2 > Problem 6-7AA (Algo) Periodic: Alternative cost flows LO P3Seminole Company began the year with 23,000 units of product in its January 1 inventory costing $15.60 each. It made four purchasesof its product during the year as follows. The company uses a periodic inventory system. On December 31, a physical count revealsthat 41,000 units of its product remain in inventory.March 7May 25August 1November 1034,000 units @ $18.60 each.36,000 units @ $22.60 each.26,000 units @ $24.60 each36,000 units @ $27.60 each.Required:1. Compute the number and total cost of the units available for sale during the year.2. Compute the amounts assigned to ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weighted average.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the amounts assigned to ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weightedaverage. (Do not round intermediate calculations. Round the final answers to nearest whole dollars.)Total cost of units available for saleLess ending inventoryCost of goods sold(a)(b)FIFO Periodic LIFO Periodic$0 $< Required 1(c)Weighted AveragePeriodic0 $Required 2>0

Methods of Valuation of Closing Inventory 1. First In First Out (FIFO): Under this method, inventory…

Required: 1. Compute the number and total cost of the units available for sale during the year. 2. Compute the amounts assigned to ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weighted average.

Required: 1. Compute the number and total cost of the units available for sale during the year. 2. Compute the amounts assigned to ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weighted average.

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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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Problem 6-7AA (Algo) Periodic: Alternative cost flows LO P3
Seminole Company began the year with 23,000 units of product in its January 1 inventory costing $15.60 each. It made four purchases
of its product during the year as follows. The company uses a periodic inventory system. On December 31, a physical count reveals
that 41,000 units of its product remain in inventory.
March 7
May 25
August 1
November 10
34,000 units @ $18.60 each
36,000 units @ $22.60 each
26,000 units @ $24.60 each
36,000 units @ $27.60 each.
Required:
1. Compute the number and total cost of the units available for sale during the year.
2. Compute the amounts assigned to ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weighted average.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the number and total cost of the units available for sale during the year.
Total units available for sale
Total cost of units available for sale
units
< Required 1
Required 2 >

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