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The beginning inventory was 500 units at a cost of $11 per unit. Goods available for sale during the year were 1,900 units at a total cost of $22,900. In May, 800 units were purchased at a total cost of $9,600. The only other purchase transaction occurred during October. Ending inventory was 850 units. Required: a. Calculate the number of units purchased in October and the cost per unit purchased in October. b. 1. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. 2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Note: Enter all values as a positive value. Periodic LIFO Beginning Inventory Purchases: May October Total Cost of Goods Available for Sale Number of units 0 Cost per unit Cost of Goods Available for Sale $ $ 0 0 0 0 Cost of Goods Sold Number of units sold Cost per unit < Required B1 Cost of Goods Sold $ 0 Inventory Balance Cost per unit Number of units in ending inventory Required B2 > 0 Ending Inventory $ 0

The beginning inventory was 500 units at a cost of $11 per unit. Goods available for sale during the year were 1,900 units at a total cost of $22,900. In May, 800 units were purchased at a total cost of $9,600. The only other purchase transaction occurred during October. Ending inventory was 850 units. Required: a. Calculate the number of units purchased in October and the cost per unit purchased in October. b. 1. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. 2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Note: Enter all values as a positive value. Periodic LIFO Beginning Inventory Purchases: May October Total Cost of Goods Available for Sale Number of units 0 Cost per unit Cost of Goods Available for Sale $ $ 0 0 0 0 Cost of Goods Sold Number of units sold Cost per unit < Required B1 Cost of Goods Sold $ 0 Inventory Balance Cost per unit Number of units in ending inventory Required B2 > 0 Ending Inventory $ 0

FINANCIAL ACCOUNTING
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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### Inventory and Cost Calculations Using FIFO and LIFO Methods **Inventory Details:** - **Beginning Inventory:** 500 units at $11 per unit. - **Total Goods Available for Sale During the Year:** 1,900 units costing $22,900. - **May Purchase:** 800 units costing $9,600. - **Ending Inventory:** 850 units. **Requirements:** 1. **Calculate Units and Costs for October Purchase:** - Part (a): Determine the number of units purchased in October and their cost per unit. - Part (b): 1. Use the Periodic Inventory System and **FIFO** method to calculate the Cost of Goods Sold (COGS) and Ending Inventory. 2. Use the Periodic Inventory System and **LIFO** method for the same calculations. **Instructions for Completion:** - Fill in your answers in the provided tabs for each requirement (A, B1, B2). **Periodic LIFO Calculation Structure:** | **Periodic LIFO** | **Cost of Goods Available for Sale** | **Cost of Goods Sold** | **Inventory Balance** | |--------------------|--------------------------------------|------------------------|-----------------------| | **Beginning Inventory** | **Number of Units** | **Cost per Unit** | **Cost of Goods Available for Sale** | **Number of Units Sold** | **Cost per Unit** | **Cost of Goods Sold** | **Number of Units in Ending Inventory** | **Cost per Unit** | **Ending Inventory** | | | | | $0 | | | $0 | | | $0 | | **Purchases**: | | | | | | | | | | | *May* | | $11 | $0 | | $11 | $0 | | $11 | | | *October* | | | | | | | | | | | **Total** | 0 | $0 | $0 | 0 | $0 | $0 | 0 | $0 | $0 | **Instructions:** - Assume a periodic inventory system for LIFO calculations. - Ensure all values are entered as positive. This exercise will guide you through understanding inventory systems
Transcribed Image Text:### Inventory and Cost Calculations Using FIFO and LIFO Methods **Inventory Details:** - **Beginning Inventory:** 500 units at $11 per unit. - **Total Goods Available for Sale During the Year:** 1,900 units costing $22,900. - **May Purchase:** 800 units costing $9,600. - **Ending Inventory:** 850 units. **Requirements:** 1. **Calculate Units and Costs for October Purchase:** - Part (a): Determine the number of units purchased in October and their cost per unit. - Part (b): 1. Use the Periodic Inventory System and **FIFO** method to calculate the Cost of Goods Sold (COGS) and Ending Inventory. 2. Use the Periodic Inventory System and **LIFO** method for the same calculations. **Instructions for Completion:** - Fill in your answers in the provided tabs for each requirement (A, B1, B2). **Periodic LIFO Calculation Structure:** | **Periodic LIFO** | **Cost of Goods Available for Sale** | **Cost of Goods Sold** | **Inventory Balance** | |--------------------|--------------------------------------|------------------------|-----------------------| | **Beginning Inventory** | **Number of Units** | **Cost per Unit** | **Cost of Goods Available for Sale** | **Number of Units Sold** | **Cost per Unit** | **Cost of Goods Sold** | **Number of Units in Ending Inventory** | **Cost per Unit** | **Ending Inventory** | | | | | $0 | | | $0 | | | $0 | | **Purchases**: | | | | | | | | | | | *May* | | $11 | $0 | | $11 | $0 | | $11 | | | *October* | | | | | | | | | | | **Total** | 0 | $0 | $0 | 0 | $0 | $0 | 0 | $0 | $0 | **Instructions:** - Assume a periodic inventory system for LIFO calculations. - Ensure all values are entered as positive. This exercise will guide you through understanding inventory systems
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The beginning inventory was 500 units at a cost of $11 per unit. Goods available for sale during the year were 1,900 units at a total cost of $22,900. In May, 800 units were purchased at a total cost of $9,600. The only other purchase transaction occurred during October. Ending inventory was 850 units. Required: a. Calculate the number of units purchased in October and the cost per unit purchased in October. b. 1. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. 2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Note: Enter all values as a positive value. Periodic LIFO Beginning Inventory Purchases: May October Total Cost of Goods Available for Sale Cost of Goods Available for Sale Number of units 500 $ 11✔ $ 800✔ 600✔ Cost per unit 1,900 12✔ 13✔ $ > Answer is complete but not entirely correct. 5.500 9,600 7,800 22,900 Cost of Goods Sold Cost per unit Number of units sold 0 300 x 600✔ 900 < Required B1 12 13 Cost of Goods Sold 3.600 7,800 $ 11,400 Inventory Balance Number of units in ending inventory Required B2 > 500 S 300 x 0✔ Cost per unit 800 11 12 Ending Inventory S 5,500 3,600 S 9,100
Transcribed Image Text:The beginning inventory was 500 units at a cost of $11 per unit. Goods available for sale during the year were 1,900 units at a total cost of $22,900. In May, 800 units were purchased at a total cost of $9,600. The only other purchase transaction occurred during October. Ending inventory was 850 units. Required: a. Calculate the number of units purchased in October and the cost per unit purchased in October. b. 1. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. 2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Note: Enter all values as a positive value. Periodic LIFO Beginning Inventory Purchases: May October Total Cost of Goods Available for Sale Cost of Goods Available for Sale Number of units 500 $ 11✔ $ 800✔ 600✔ Cost per unit 1,900 12✔ 13✔ $ > Answer is complete but not entirely correct. 5.500 9,600 7,800 22,900 Cost of Goods Sold Cost per unit Number of units sold 0 300 x 600✔ 900 < Required B1 12 13 Cost of Goods Sold 3.600 7,800 $ 11,400 Inventory Balance Number of units in ending inventory Required B2 > 500 S 300 x 0✔ Cost per unit 800 11 12 Ending Inventory S 5,500 3,600 S 9,100
The beginning inventory was 500 units at a cost of $11 per unit. Goods available for sale during the year were 1,900 units at a total cost of $22,900. In May, 800 units were purchased at a total cost of $9,600. The only other purchase transaction occurred during October. Ending inventory was 850 units. Required: a. Calculate the number of units purchased in October and the cost per unit purchased in October. b. 1. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. 2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. Note: Enter all values as a positive value. Periodic FIFO Beginning Inventory Purchases: May October Total Cost of Goods Available for Sale Cost of Goods Available for Sale Number of units 500 $ 11✔ $ 800✔ 600✔ Cost per unit 1,900 12✔ 13✔ $ Answer is complete but not entirely correct. 5,500 9,600 7,800 22,900 Cost of Goods Sold Cost per unit Number of units sold 500✔ S 800 X 0♥ 1,300 < Required A 11 12 Cost of Goods Sold $ 5,500 9,600 $ 15,100 Inventory Balance Number of units in ending inventory Required B2 > 0✔ 200 X 600✔ 800 Cost per unit 12 13 Ending Inventory 2,400 7,800 $ 10,200
Transcribed Image Text:The beginning inventory was 500 units at a cost of $11 per unit. Goods available for sale during the year were 1,900 units at a total cost of $22,900. In May, 800 units were purchased at a total cost of $9,600. The only other purchase transaction occurred during October. Ending inventory was 850 units. Required: a. Calculate the number of units purchased in October and the cost per unit purchased in October. b. 1. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. 2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. Note: Enter all values as a positive value. Periodic FIFO Beginning Inventory Purchases: May October Total Cost of Goods Available for Sale Cost of Goods Available for Sale Number of units 500 $ 11✔ $ 800✔ 600✔ Cost per unit 1,900 12✔ 13✔ $ Answer is complete but not entirely correct. 5,500 9,600 7,800 22,900 Cost of Goods Sold Cost per unit Number of units sold 500✔ S 800 X 0♥ 1,300 < Required A 11 12 Cost of Goods Sold $ 5,500 9,600 $ 15,100 Inventory Balance Number of units in ending inventory Required B2 > 0✔ 200 X 600✔ 800 Cost per unit 12 13 Ending Inventory 2,400 7,800 $ 10,200
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