DUE ASAP POINTS IMMEDIATLY Remsen Company Inc. had a beginning inventory of 124

Question

DUE ASAP POINTS IMMEDIATLY

Remsen Company Inc. had a beginning inventory of 124 units of Product MLN at a cost of $10 per unit. During the year, purchases were: Remsen Company uses a periodic inventory system. Sales totalled 1,859 units. Determine the cost of goods available for sale. Calculate average cost per unit. (Round answer to 3 decimal places, e.g. 5.125.) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, UFO, and average-cost). (Round answers to 0 decimal places, e.g. 125.)

Explanation / Answer

Hi,

Please find the answer as follows;

Ending Inventory = Total Units Available for Sale - Units Sold = 2107 - 1859 = 248 Units

Value of Ending Inventory (FIFO) = 124*15 + (248 - 124)*14 = 3596

Value of Ending Inventory (LIFO) = 124*10 + (248-124)*11 = 2604

Value of Ending Inventory (Average Cost) = 248*12.177= 3020

Cost of Goods Sold (FIFO) = 124*10 + 743*11 + 620*12 + 372*14 = 22061

Cost of Goods Sold (LIFO) = 124*15 + 496*14 + 620*12 + 619*11 = 23053

Cost of Goods Sold (Average Cost) = 1859*12.177 = 22637

Thanks.

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