The following is the detail of the purchase and sale of inventory of a product of Simco Co. May 1 Beg. Inventory 60 units @ $220 May 2 Purchase 100 units @ $216 May 14 Purchase 50 units @ $224 May 22 Purchase 60 units @ $234 May 30 Sale 200 units Required: 1. Compute the cost of goods sold and cost of ending inventory for Simco Co. for May under the FIFO, LIFO, and weighted average cost assumptions. 2. Which method results in Simco Co. paying the least tax?
The following is the detail of the purchase and sale of inventory of a product of Simco Co. May 1 Beg. Inventory 60 units @ $220 May 2 Purchase 100 units @ $216 May 14 Purchase 50 units @ $224 May 22 Purchase 60 units @ $234 May 30 Sale 200 units Required: 1. Compute the cost of goods sold and cost of ending inventory for Simco Co. for May under the FIFO, LIFO, and weighted average cost assumptions. 2. Which method results in Simco Co. paying the least tax?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The following is the detail of the purchase and sale of inventory of a product of Simco Co.
May 1 Beg. Inventory 60 units @ $220
May 2 Purchase
100 units @ $216
May 14 Purchase
50 units @ $224
May 22 Purchase
60 units @ $234
May 30 Sale
200 units
Required: 1. Compute the cost of goods sold and cost of ending inventory for Simco Co. for May under the FIFO, LIFO, and weighted average cost assumptions.
2. Which method results in Simco Co. paying the least tax?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedee434d-fd6f-49bb-a179-14f2193234b3%2Fd27c7d56-fd71-4328-9ec2-e81f4b24b75d%2Fz0kkb89_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following is the detail of the purchase and sale of inventory of a product of Simco Co.
May 1 Beg. Inventory 60 units @ $220
May 2 Purchase
100 units @ $216
May 14 Purchase
50 units @ $224
May 22 Purchase
60 units @ $234
May 30 Sale
200 units
Required: 1. Compute the cost of goods sold and cost of ending inventory for Simco Co. for May under the FIFO, LIFO, and weighted average cost assumptions.
2. Which method results in Simco Co. paying the least tax?
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