Soler Company uses the periodic method to account for inventory. At the beginning of the year, Soler had 300 units of inventory that cost $45 (you need to include this inventory in your count when answering the questions below). Soler had the following inventory purchases throughout the period: First 250 units @ $50 = $12,500 Second 430 units @ $52 = $22,360 Third 325 units @ $55 = $17,875 Fourth 205 units @ $57 = $11,685 Throughout the year, Soler sold 1,025 units for $120 per unit. Using the information above, complete the following: Calculate the Cost of Goods Sold and Ending Inventory using FIFO. (You can use the long way or the shortcut method). Calculate the Cost of Goods Sold and Ending Inventory using LIFO. (You can use the long way or the shortcut method). Calculate the Cost of Goods Sold and Ending Inventory using Average Cost. (You can use the long way or the shortcut method).
Soler Company uses the periodic method to account for inventory. At the beginning of the year, Soler had 300 units of inventory that cost $45 (you need to include this inventory in your count when answering the questions below). Soler had the following inventory purchases throughout the period: First 250 units @ $50 = $12,500 Second 430 units @ $52 = $22,360 Third 325 units @ $55 = $17,875 Fourth 205 units @ $57 = $11,685 Throughout the year, Soler sold 1,025 units for $120 per unit. Using the information above, complete the following: Calculate the Cost of Goods Sold and Ending Inventory using FIFO. (You can use the long way or the shortcut method). Calculate the Cost of Goods Sold and Ending Inventory using LIFO. (You can use the long way or the shortcut method). Calculate the Cost of Goods Sold and Ending Inventory using Average Cost. (You can use the long way or the shortcut method).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Soler Company uses the periodic method to account for inventory. At the beginning of the year, Soler had 300 units of inventory that cost $45 (you need to include this inventory in your count when answering the questions below).
Soler had the following inventory purchases throughout the period:
|
First |
250 |
units |
@ |
$50 |
= |
$12,500 |
|
Second |
430 |
units |
@ |
$52 |
= |
$22,360 |
|
Third |
325 |
units |
@ |
$55 |
= |
$17,875 |
|
Fourth |
205 |
units |
@ |
$57 |
= |
$11,685 |
Throughout the year, Soler sold 1,025 units for $120 per unit.
Using the information above, complete the following:
- Calculate the Cost of Goods Sold and Ending Inventory using FIFO. (You can use the long way or the shortcut method).
- Calculate the Cost of Goods Sold and Ending Inventory using LIFO. (You can use the long way or the shortcut method).
- Calculate the Cost of Goods Sold and Ending Inventory using Average Cost. (You can use the long way or the shortcut method).
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education