XYZ Company uses the periodic inventory system to account for inventories. Information related to XYZ Company's inventory at December 31 is given below: December 1 Beginning inventory 300 units @ $10 = $ 3,000 8 Purchase 200 units @ $11 = 2,200 16 Purchase 400 units @ $12 = 4,800 24 Purchase 150 units @ $13 = 1,950 Total units and cost 1,050 units $11,950 Instructions: 1. Show computations to value the ending inventory and cost of goods sold using the FIFO cost assumption if 550 units remain on hand at December 31. 2. Show computations to value the ending inventory and cost of goods sold using the weighted-average cost method if 550 units remain on hand at December 31. 3. Show computations to value the ending inventory and cost of goods sold using the LIFO cost assumption if 550 units remain on hand at December 31.
XYZ Company uses the periodic inventory system to account for inventories. Information related to XYZ Company's inventory at December 31 is given below:
December 1 Beginning inventory 300 units @ $10 = $ 3,000
8 Purchase 200 units @ $11 = 2,200
16 Purchase 400 units @ $12 = 4,800
24 Purchase 150 units @ $13 = 1,950
Total units and cost 1,050 units $11,950
Instructions:
1. Show computations to value the ending inventory and cost of goods sold using the FIFO cost assumption if 550 units remain on hand at December 31.
2. Show computations to value the ending inventory and cost of goods sold using the weighted-average cost method if 550 units remain on hand at December 31.
3. Show computations to value the ending inventory and cost of goods sold using the LIFO cost assumption if 550 units remain on hand at December 31.
4. As an accounting student, indicate how companies choose between
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