FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The units of an item available for sale during the year were as follows:
Jan. 1
Feb. 17
Beg Inventory 9 units at $360 each
Purchase
Jul. 21
Nov. 23
18 units at $414 each
Purchase
21 units at $468 each
Purchase
12 units at $495 each
There are 16 units of the item in the physical inventory at year end, December 31.
Instructions:
Determine the cost of merchandise sold (cost of goods sold) and the cost of the ending merchanise inventory.
1. the first-in, first-out method
2. the last-in, first-out method
3. the average cost method
Inventory Method
Cost of Merchandise Sold
Cost of Ending Inventory
First-in, First-out
Last-in, First-out
Average Cost
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Transcribed Image Text:The units of an item available for sale during the year were as follows: Jan. 1 Feb. 17 Beg Inventory 9 units at $360 each Purchase Jul. 21 Nov. 23 18 units at $414 each Purchase 21 units at $468 each Purchase 12 units at $495 each There are 16 units of the item in the physical inventory at year end, December 31. Instructions: Determine the cost of merchandise sold (cost of goods sold) and the cost of the ending merchanise inventory. 1. the first-in, first-out method 2. the last-in, first-out method 3. the average cost method Inventory Method Cost of Merchandise Sold Cost of Ending Inventory First-in, First-out Last-in, First-out Average Cost
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