Grouper Corp. had a beginning inventory of 104 units of Product RST at a cost of
ID: 2490197 • Letter: G
Question
Grouper Corp. had a beginning inventory of 104 units of Product RST at a cost of $7 per unit. During the year, purchases were: Grouper Corp. uses a periodic inventory system. Sales totaled 1,370 units. Determine the cost of goods available for sale. The cost of goods available for sale $ Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.) Average Cost $ Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g.150.)Explanation / Answer
Date Particulars Units Cost Amt Opening Balance 104 7 728 20-Feb purchases 595 8 4760 5-May purchases 480 9 4320 12-Aug purchases 364 10 3640 8-Dec purchases 110 11 1210 Total 1653 14658 Less: Sales (units) 1370 Ending Inventory 283 a Cost of Good Avaialble for sale=Opening Inventory+Purchases 728+13930 14658 Ans b Average cost Total Cost/Total no. of units 14658/1653 8.868 Ending Inventory 283 FIFO (110*$11)+((283-110)*$10) 2940 Ans c LIFO (104*$7)+((283-104)*$8) 2160 Ans c Average cost 283*8.868 2509.644 Ans c Cost og Good Sold(Opening+Purchases-Closing Inventory) FIFO 14658-2940 11718 Ans c LIFO 14658-2160 12498 Ans c Average cost 14658-2510 2160 Ans c
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