FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Note that this was everything given for this particular item.  

Use the information below to figure out what the Cost of Goods Sold is for the order placed for

  • FIFO
  • LIFO
  • and Weighted Average Cost (Average Cost)

·       Date 

Explanation

Units 

Unit Cost

Total Cost 

1/15/2021

Beginning Inventory 

10

$7

$70

2/2/2021

Purchase 

35

$8

280

2/28/2021

Purchase 

56

$9

504

5/15/2021

Purchase 

104

$10

1,040

9/30/2021

Purchase 

220

$11

2,420

Sales - 5 units for $1,300 (5 * 300)

   

Expert Solution
Check Mark
Step 1

Inventory valuation is based on the flow of exemption used by the company. There are many methods for the valuation of inventory such as LIFO, FIFO, weighted average method, etc. 

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