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Question

Seminole Co. began the year with 23,000 units of product in its January 1 inventory costing $15 each. It made four purchases of its product during the year as follows. The company uses a periodic inventory system. On December 31, a physical count reveals that 40,000 units of its product remain in inventory.

Date
Activities
March 7 30,000 units @$18.00 each
May 25 39,000 units @ $20.00 each
August 1 23,000 units @$25.00 each
November 10 35,000 units @ $26.00 each

Required

  1. Compute the number and total cost of the units available for sale during the year.

  2. Compute the amounts assigned to ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weighted average. (Round all amounts to cents.)

Solution

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Answered 1 year ago
Answered 1 year ago
Step 1
1 of 15

In this exercise, we will compute for the total cost of goods and units available for sale, cost of goods sold, and cost of ending inventory under FIFO, LIFO, and weighted average.

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