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XYZ corporation provides the following information related to its merchandise inventory during the month of August 2021:Aug1. Inventory on hand- 2,000 units, cost $5.30 each.8. Purchased 8,000 units for $5.5 each.14 Sold 6,000 units for $12.00 each.18 Purchased 6,000 units for $5.60 each.25 Sold 7,000 units for $11.00 each.28 Purchased 4,000 units for $5.80 each.31 Inventory on hand-7,000 units.Determine the inventory balance XYZ would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 31 income statement using LIFO and average cost based on eriodic inventory system.

XYZ corporation provides the following information related to its merchandise inventory during the month of August 2021:Aug1. Inventory on hand- 2,000 units, cost $5.30 each.8. Purchased 8,000 units for $5.5 each.14 Sold 6,000 units for $12.00 each.18 Purchased 6,000 units for $5.60 each.25 Sold 7,000 units for $11.00 each.28 Purchased 4,000 units for $5.80 each.31 Inventory on hand-7,000 units.Determine the inventory balance XYZ would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 31 income statement using LIFO and average cost based on eriodic inventory system.

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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XYZ corporation provides the following information related to its merchandise inventory during the month of August 2021:Aug1. Inventory on hand- 2,000 units, cost $5.30 each.8. Purchased 8,000 units for $5.5 each.14 Sold 6,000 units for $12.00 each.18 Purchased 6,000 units for $5.60 each.25 Sold 7,000 units for $11.00 each.28 Purchased 4,000 units for $5.80 each.31 Inventory on hand-7,000 units. Determine the inventory balance XYZ would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 31 income statement using LIFO and average cost based on eriodic inventory system.
Transcribed Image Text:XYZ corporation provides the following information related to its merchandise inventory during the month of August 2021:Aug1. Inventory on hand- 2,000 units, cost $5.30 each.8. Purchased 8,000 units for $5.5 each.14 Sold 6,000 units for $12.00 each.18 Purchased 6,000 units for $5.60 each.25 Sold 7,000 units for $11.00 each.28 Purchased 4,000 units for $5.80 each.31 Inventory on hand-7,000 units. Determine the inventory balance XYZ would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 31 income statement using LIFO and average cost based on eriodic inventory system.
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