Weygandt, Financial Accounting: IFRS, 3e Lo ACCOUNTING-1061-PU-YHC-IM (23 Assign

Question

Weygandt, Financial Accounting: IFRS, 3e Lo ACCOUNTING-1061-PU-YHC-IM (23 Assignment Gradebook ORION Downloadable eTextbook ent CALCINATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERESION BACK Exercise 6-7 SarasotaCompany Ltd. had 290 units in beginning inventory at a total cost of NT$896,100. The company purchased 580 units at a total cost of NT$1,978,380. At the end of the year, Sarasota had 218 units in ending inventory. [ Your answer is incorrect. Try again. Compute the cost of the ending inventory and the cost of goods sold under FIFO and average-cost. (Round average-cost per unit to 2 decimal places, e. s.2.25 and final answers to O decimal places, e.g. NT$45.) The cost of the ending inventory 67016.034 NT 66251.94 NT The cost of goods sold 2907384 NTS 2808148.06 NTS LINK TO TEXT [ Your answer is correct. Which cost flow method would result in the higher net income7

Explanation / Answer

FIFO Ending Inventory Cost Units Cost per unit $1,978,380.00 580 $3,411.00 $896,100.00 290 $3,090.00 Ending Inventory = $3411 x 218 units $743,598 Cost of Good Sold = (580 + 290 - 218) = 652 units COGS = 580 units x $3411 + 72 units x $3090 $2,200,860.00 Average Method Ending Inventory Cost Units $1,978,380.00 580 $896,100.00 290 $2,874,480.00 $870.00 Average cost per unit = 2874480/870 $3,304.00 Ending Inventory = $3304 x 218 units $720,272.00 Cost of Good Sold = $3304 x 652 units $2,154,208.00

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