Spear Corporation's inventory records for its retail division show the following at May 31: (Click the icon to view the accounting records.) At May 31, 11 of these units are on hand. Read the requirements. Requirement 1. Compute cost of goods sold and ending inventory, using each of the following four inventory methods: Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific identification, then (b) average cost, then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.) Number (a) (b) (c) (d) of units Specific identification Average cost FIFO LIFO Cost of goods sold Ending inventory

Spear Corporation's inventory records for its retail division show the following at May 31: (Click the icon to view the accounting records.) At May 31, 11 of these units are on hand. Read the requirements. Requirement 1. Compute cost of goods sold and ending inventory, using each of the following four inventory methods: Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific identification, then (b) average cost, then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.) Number (a) (b) (c) (d) of units Specific identification Average cost FIFO LIFO Cost of goods sold Ending inventory

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Description: Spear Corporation's inventory records for its retail division show the following at May 31:(Click the icon to view the accounting records.)At May 31, 11 of these units are on hand.Read the requirementsRequirement 1. Compute cost of goods sold and en

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 7DQ: Using the following data, how should the inventory be valued under lower of cost or market? Original...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Spear Corporation's inventory records for its retail division show the following at May 31:
(Click the icon to view the accounting records.)
At May 31, 11 of these units are on hand.
Read the requirements
Requirement 1. Compute cost of goods sold and ending inventory, using each of the following four inventory methods:
Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific identification, then (b) average cost,
then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.)
Number
(a)
(b)
(c)
(d)
of units
Specific identification
Average cost
FIFO
LIFO
Cost of goods sold
Ending inventory

on show the following at May 31:
Data Table
g in
of u
y using
ar.)
May 1
Beginning inventory 10 units @ $160 = $1,600
Cos
May 15
Purchase
5 units @ $161 = $805
%3D
May 26
Purchase
14 units @ $170 = $2,380
Print
Done
ost of goods sold? Which method produces the lowest cost of goods sold?
e to the next question.

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