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urchases 1 inventory . 9 er 30 10 15 Units 4 11 11 16 17 21 31 17 Unit cost $ 2.50 3.00 3.50 3.75 4.50 4.70 4.90 5.30

urchases 1 inventory . 9 er 30 10 15 Units 4 11 11 16 17 21 31 17 Unit cost $ 2.50 3.00 3.50 3.75 4.50 4.70 4.90 5.30

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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**Problem Statement:** From the following, calculate the cost of ending inventory and cost of goods sold for the FIFO method, ending inventory is 54 units. **Note:** Round your answers to the nearest cent. **Table Summary:** | Beginning inventory and purchases | Units | Unit cost | |-----------------------------------|-------|-----------| | January 1 | 4 | $2.50 | | April 10 | 11 | $3.00 | | May 15 | 11 | $3.50 | | July 22 | 16 | $3.75 | | August 19 | 17 | $4.50 | | September 30 | 21 | $4.70 | | November 10 | 31 | $4.90 | | December 15 | 17 | $5.30 | **Calculate:** - Cost of ending inventory - Cost of goods sold **Description:** Students are required to use the given data table to determine the cost of ending inventory and the cost of goods sold using the FIFO (First-In, First-Out) inventory method. The table lists inventory transactions, with corresponding units and unit costs. The ending inventory consists of 54 units.
Transcribed Image Text:**Problem Statement:** From the following, calculate the cost of ending inventory and cost of goods sold for the FIFO method, ending inventory is 54 units. **Note:** Round your answers to the nearest cent. **Table Summary:** | Beginning inventory and purchases | Units | Unit cost | |-----------------------------------|-------|-----------| | January 1 | 4 | $2.50 | | April 10 | 11 | $3.00 | | May 15 | 11 | $3.50 | | July 22 | 16 | $3.75 | | August 19 | 17 | $4.50 | | September 30 | 21 | $4.70 | | November 10 | 31 | $4.90 | | December 15 | 17 | $5.30 | **Calculate:** - Cost of ending inventory - Cost of goods sold **Description:** Students are required to use the given data table to determine the cost of ending inventory and the cost of goods sold using the FIFO (First-In, First-Out) inventory method. The table lists inventory transactions, with corresponding units and unit costs. The ending inventory consists of 54 units.
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Cost of goods sold refers to the form of expenses born by a company incurred in producing a lot of products. It is reflected on the expense side of the Profit and loss statement of the company.

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