**Inventory Valuation Exercise**Your answer is partially correct.**Instructions:**Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost methods. *(Note: Round per unit cost to 3 decimal places, e.g., 15.647, and final answers to 0 decimal places, e.g., 5,125.)***Table:**- **FIFO** - Cost of the ending inventory: $ ___ - Cost of goods sold: $ ___- **LIFO** - Cost of the ending inventory: $ ___ - Cost of goods sold: $ ___- **Average-cost** - Cost of the ending inventory: $1,185 - Cost of goods sold: $2,725**Additional Information:**- eTextbook and Media resources are available.- Options include "Save for Later."- Number of attempts used: 2 of 5- Click "Submit Answer" when ready.This exercise helps in understanding the different inventory valuation methods and their impact on financial statements. Sunland Company uses a periodic inventory system and reports the following for the month of June:| Date | Explanation | Units | Unit Cost | Total Cost ||---------|-------------|-------|-----------|------------|| June 1 | Inventory | 120 | $5 | $600 || June 12 | Purchase | 330 | $6 | $1,980 || June 23 | Purchase | 190 | $7 | $1,330 || June 30 | Inventory | 194 | | |This table details the inventory and purchase activity for Sunland Company throughout June, showing the number of units on hand or purchased, the cost per unit, and the total cost of inventory at different points in the month.

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Answered: Sunland Company uses a periodic…

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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Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki's records show the following for the month of January. Sales totaled 300 units. Beginning Inventory Purchase Purchase Required: Date January 1 January 15 January 24 Units 200 340 Unit Cost $ 70 Total Cost $ 14,000 80 260 100 27,200 26,000 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. FIFO LIFO Cost of Ending Inventory Cost of Goods Sold Weighted…
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ddison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September: Sept. 1 Inventory 20 units at $20 4 Sale 10 units 10 Purchase 30 units at $25 17 Sale 20 units 30 Purchase 10 units at $30 Use the information for Addison, Inc. If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is
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Sunland Company uses a periodic inventory system and reports the following for the month of June. Unit Total Date Explanation Units Cost Cost June 1 Inventory 120 $5 $ 600 12 Purchase 330 6 1,980 23 Purchase 190 7 1,330 30 Inventory 194