FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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[The following information applies to the questions displayed below.]
Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from
its suppliers and the number sold to customers. The records show the following purchases and sales during 2021.
Cost per
Unit
$ 28
Date
Transactions
Units
Total Cost
Beginning inventory
January 1
Аpril 14
August 22
October 29
$1,036
2,040
3,776
37
Purchase
68
30
Purchase
118
32
Purchase
83
34
2,822
306
$9,674
Jan. 1-Dec. 31
Sales ($48 each)
272
Sylvester uses a periodic inventory system and believes there are 34 birds remaining in ending inventory. However,
Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages
open one night and 10 birds flew away, leaving only 24 birds in ending inventory. Sylvester is not aware of the lost
canaries
2. What amount would Sylvester calculate for ending inventory and cost of goods sold using FIFO if he knew that only 24 canaries
remain in ending inventory?
Ending inventory
Cost of goods sold
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Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Cost per Unit $ 28 Date Transactions Units Total Cost Beginning inventory January 1 Аpril 14 August 22 October 29 $1,036 2,040 3,776 37 Purchase 68 30 Purchase 118 32 Purchase 83 34 2,822 306 $9,674 Jan. 1-Dec. 31 Sales ($48 each) 272 Sylvester uses a periodic inventory system and believes there are 34 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 24 birds in ending inventory. Sylvester is not aware of the lost canaries 2. What amount would Sylvester calculate for ending inventory and cost of goods sold using FIFO if he knew that only 24 canaries remain in ending inventory? Ending inventory Cost of goods sold
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