Shown below is activity for one of the products of Denver Office Equipment:   January 1 balance, 500 units @ $55 Purchases:             January 10: 500 units @ $60             January 20: 800 units @ $63 Sales:       January 12: 750 units       January 28: 650 units   *Do only what is required.  You will lose a point or two for unnecessary answers. 1) Compute the cost of goods sold for January, assuming Denver uses FIFO and periodic inventory system. Cost of goods sold: $   Your computations: (no credit if not shown).     2) Compute the January 31 cost of ending inventory, assuming Denver uses LIFO and periodic inventory system.   Cost of ending inventory: $   Your computations: (no credit if not shown).     3) Compute the January31 cost of ending inventory, assuming Denver uses LIFO and perpetual inventory system.   Cost of ending inventory: $   Your computations: (no credit if not shown).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. Shown below is activity for one of the products of Denver Office Equipment:

 

January 1 balance, 500 units @ $55

Purchases:

            January 10: 500 units @ $60

            January 20: 800 units @ $63

Sales:

      January 12: 750 units

      January 28: 650 units

 

*Do only what is required.  You will lose a point or two for unnecessary answers.

1) Compute the cost of goods sold for January, assuming Denver uses FIFO and periodic inventory system.


Cost of goods sold: $

 

Your computations: (no credit if not shown).

 

 

2) Compute the January 31 cost of ending inventory, assuming Denver uses LIFO and periodic inventory system.

 

Cost of ending inventory: $

 

Your computations: (no credit if not shown).

 

 

3) Compute the January31 cost of ending inventory, assuming Denver uses LIFO and perpetual inventory system.

 

Cost of ending inventory: $

 

Your computations: (no credit if not shown).

 

 

4) Compute the cost of goods sold for January, assuming Denver uses average cost and perpetual inventory system.

 

Cost of goods sold: $

 

Your computations: (no credit if not shown)

 

 

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