Roman Sound uses a periodic inventory system. One of the store's products is a wireless headphone. The inventory quantities, purchases, and sales of this product for the most recent year are as follows: Number of Units Cost per Unit Total Cost Inventory, Jan. 1 10 $100 $1,000 First purchase 30 101 3,030 Second purchase 40 104 4,160 Third purchase 5 106 530 Fourth purchase 15 110 1,650 Goods available for sale 100 $10,370 Units sold during the year 80 Inventory, Dec. 31 20 Instructions a. Using periodic costing procedures, compute the cost of the December 31 inventory and the cost of goods Sold for the year under each of the following cost assumptions: 1. First-in. first-out. 2. Last-in. first-out. 3. Average cost (round to the nearest dollar, except unit cost)
Roman Sound uses a periodic inventory system. One of the store's products is a wireless headphone. The inventory quantities, purchases, and sales of this product for the most recent year are as follows: Number of Units Cost per Unit Total Cost Inventory, Jan. 1 10 $100 $1,000 First purchase 30 101 3,030 Second purchase 40 104 4,160 Third purchase 5 106 530 Fourth purchase 15 110 1,650 Goods available for sale 100 $10,370 Units sold during the year 80 Inventory, Dec. 31 20 Instructions a. Using periodic costing procedures, compute the cost of the December 31 inventory and the cost of goods Sold for the year under each of the following cost assumptions: 1. First-in. first-out. 2. Last-in. first-out. 3. Average cost (round to the nearest dollar, except unit cost)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Roman Sound uses a periodic inventory system. One of the store's products is a wireless headphone. The inventory quantities, purchases, and sales of this product for the most recent year are as follows:
Number of Units
Cost per Unit
Total Cost
Inventory, Jan. 1
10
$100
$1,000
First purchase
30
101
3,030
Second purchase
40
104
4,160
Third purchase
5
106
530
Fourth purchase
15
110
1,650
Goods available for sale
100
$10,370
Units sold during the year
80
Inventory, Dec. 31
20
Instructions
a. Using periodic costing procedures, compute the cost of the December 31 inventory and the cost of goods Sold for the year under each of the following cost assumptions:
1. First-in. first-out.
2. Last-in. first-out.
3. Average cost (round to the nearest dollar, except unit cost).
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