Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically. FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased. LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased. Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit. Requirement-1: To Determine: The Ending Merchandise inventory and Cost of Goods sold amount using the FIFO method under Periodic inventory system

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem S6A.11SE

To determine

Concept Introduction:

Periodic Inventory System: The periodic inventory system records and updates the inventory at the end of a particular period. The inventory balance is not updated after each transaction and it is updated periodically.

FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.

LIFO method: LIFO Stands for Last In First Out. Under this method, the latest units purchased are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the oldest units purchased.

Weighted Average method: Under this method, the cost per unit of the inventory is calculated as weighted average cost per unit and the cost of goods sold and inventory is calculated with the help of weighted average cost per unit.

Requirement-1:

To Determine: The Ending Merchandise inventory and Cost of Goods sold amount using the FIFO method under Periodic inventory system

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What is the company's plant wide overhead rate on these financial accounting question?

Charlotte's Cleaning Services began the year with total liabilities of $120,000 and stockholders' equity of $55,000. During the year, the company earned $140,000 in net income and paid $10,000 in dividends. Total liabilities at the end of the year were $260,000. How much are total assets at the end of the year? Provide answer

Sunflower Oil Processors incurred the following plant maintenance costs: 65,000 units processed with maintenance costs of $92,000 48,000 units processed with maintenance costs of $75,000 What is the variable cost per unit processed?