The records for the Flagstaff Company showed the following for the one item they sell during the year ended December 31, 2022: Date of Transactions Units Unit Costs Inventory 1/1 40 $20 Purchase 3/5 120 $24 Sale 5/15 80 Purchase 7/11 40 $22 Sale 9/24 30 Purchase 10/23 50 $26 Sale 11/5 40 Required: Assuming a periodic inventory system compute the cost of goods sold during the year and the ending inventory in dollars under each of the following inventory costing methods (show computations and round to the nearest cents): 1) Weighted-average cost (Average cost method the book calls it) 2) First-in, First-out (FIFO) 3) Last-in, First-out (LIFO)
The records for the Flagstaff Company showed the following for the one item they sell during the year ended December 31, 2022: Date of Transactions Units Unit Costs Inventory 1/1 40 $20 Purchase 3/5 120 $24 Sale 5/15 80 Purchase 7/11 40 $22 Sale 9/24 30 Purchase 10/23 50 $26 Sale 11/5 40 Required: Assuming a periodic inventory system compute the cost of goods sold during the year and the ending inventory in dollars under each of the following inventory costing methods (show computations and round to the nearest cents): 1) Weighted-average cost (Average cost method the book calls it) 2) First-in, First-out (FIFO) 3) Last-in, First-out (LIFO)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The records for the Flagstaff Company showed the following for the one item they
sell during the year ended December 31, 2022:
Date of
Transactions Units Unit Costs
Inventory 1/1 40 $20
Purchase 3/5 120 $24
Sale 5/15 80
Purchase 7/11 40 $22
Sale 9/24 30
Purchase 10/23 50 $26
Sale 11/5 40
Required: Assuming a periodic inventory system compute the cost of goods sold
during the year and the ending inventory in dollars under each of the following
inventory costing methods (show computations and round to the nearest cents):
1) Weighted-average cost (Average cost method the book calls it)
2) First-in, First-out (FIFO)
3) Last-in, First-out (LIFO)
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