4. Inventory valuation methods. Computations and concepts. Wave Riders Surf Boar

Question

4. Inventory valuation methods. Computations and concepts. Wave Riders Surf Board Company began business on January 1 of the current year. Purchases of surf boards were as follows: Jan.3 100 boards <& $125 Mar.17 50 boards @ $130 May9 246 boards @ $140 July3 400 boards @ $150 Oct.23 74 boards @ $160 Wave Riders sold 710 boards at an average price of $250 per board. The company uses a periodic inventory system. Instructions: Calculate cost of goods sold, ending inventory, and gross profit under each of the following inventory valuation methods: First-in, first-out.

Explanation / Answer

Plz rate me first Inventory valuation methods: First-in, first-out. As per FIFO First purchased is first sold. given Wave Riders sold 710 boards at an average price of $250 Total purchases:(100 + 50 + 246+ 400+ 74 = 870 units) 100 boards @ $125, 50 boards @ $130, 246 boards @ $140, 400 boards @ $150, 74 boards @ $160 cost of goods sold @ FIFO = 100 x 125 + 50 x 130 + 246 x 140 +314 x 150 = 12500 + 6500 +34440 +47100 = $100540

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.