Homework Help is Here – Start Your Trial Now!
Business
Accounting
Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units @ $126 Mar. 10 Purchase 70 units @ $138 Aug. 30 Purchase 30 units @ $144 Dec. 12 Purchase 60 units @ $146 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Merchandise Sold a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost $ 1000

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units @ $126 Mar. 10 Purchase 70 units @ $138 Aug. 30 Purchase 30 units @ $144 Dec. 12 Purchase 60 units @ $146 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Merchandise Sold a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost $ 1000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question
Please do not give solution in image format
**Periodic Inventory by Three Methods: Cost of Merchandise Sold** The units of an item available for sale during the year were as follows: - **Jan. 1:** Inventory, 40 units @$126 - **Mar. 10:** Purchase, 70 units @$138 - **Aug. 30:** Purchase, 30 units @$144 - **Dec. 12:** Purchase, 60 units @$146 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. **Task:** Determine the inventory cost and the cost of merchandise sold using three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. ### Cost of Merchandise Inventory and Cost of Merchandise Sold | Inventory Method | Merchandise Inventory | Merchandise Sold | |------------------------------------------|-----------------------|------------------| | a. First-in, first-out (FIFO) | \$ | \$ | | b. Last-in, first-out (LIFO) | \$ | \$ | | c. Weighted average cost | \$ | \$ | **Explanation:** This table is used to calculate and compare the cost of merchandise inventory and the cost of merchandise sold based on different inventory methods: FIFO, LIFO, and Weighted Average Cost. Each method affects the financial outcomes and is used to analyze inventory costs strategically.
Transcribed Image Text:**Periodic Inventory by Three Methods: Cost of Merchandise Sold** The units of an item available for sale during the year were as follows: - **Jan. 1:** Inventory, 40 units @$126 - **Mar. 10:** Purchase, 70 units @$138 - **Aug. 30:** Purchase, 30 units @$144 - **Dec. 12:** Purchase, 60 units @$146 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. **Task:** Determine the inventory cost and the cost of merchandise sold using three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. ### Cost of Merchandise Inventory and Cost of Merchandise Sold | Inventory Method | Merchandise Inventory | Merchandise Sold | |------------------------------------------|-----------------------|------------------| | a. First-in, first-out (FIFO) | \$ | \$ | | b. Last-in, first-out (LIFO) | \$ | \$ | | c. Weighted average cost | \$ | \$ | **Explanation:** This table is used to calculate and compare the cost of merchandise inventory and the cost of merchandise sold based on different inventory methods: FIFO, LIFO, and Weighted Average Cost. Each method affects the financial outcomes and is used to analyze inventory costs strategically.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS