#4. Stratton Company's inventory records for the most recent years contain the following data: Unit Cost...
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#4. Stratton Company's inventory records for the most recent years contain the following data: Unit Cost Quantity 7,000 $14.00 = 98,000 Beginning Inventory Purchases during year 18,000 $16.00 288,000 25,000 15.44 386,000 Stratton Company sold a total of 20,500 units during the year. Requirement 1: Using the average-cost method, compute the cost of goods sold and ending inventory for the year Goods sold: 20,500 Closing inventory = 7,000+ 18,000 - 20,500 = 4,500 Average cost of inventory = 386,000/25,000 = 15.44 Average-Cost Method cost of goods sold = 20,500 x 15.44 = 316,520 Average-Cost Method ending inventory = 4,500 x 15.44 = 69,480 Requirement 2: Using the FIFO method, compute the cost of goods sold and ending inventory for the year. FIFO Method cost of goods sold = FIFO Method ending inventory = Requirement 3: Using the LIFO method, compute the cost of goods sold and the ending inventory for the year #4. Stratton Company's inventory records for the most recent years contain the following data: Unit Cost Quantity 7,000 $14.00 = 98,000 Beginning Inventory Purchases during year 18,000 $16.00 288,000 25,000 15.44 386,000 Stratton Company sold a total of 20,500 units during the year. Requirement 1: Using the average-cost method, compute the cost of goods sold and ending inventory for the year Goods sold: 20,500 Closing inventory = 7,000+ 18,000 - 20,500 = 4,500 Average cost of inventory = 386,000/25,000 = 15.44 Average-Cost Method cost of goods sold = 20,500 x 15.44 = 316,520 Average-Cost Method ending inventory = 4,500 x 15.44 = 69,480 Requirement 2: Using the FIFO method, compute the cost of goods sold and ending inventory for the year. FIFO Method cost of goods sold = FIFO Method ending inventory = Requirement 3: Using the LIFO method, compute the cost of goods sold and the ending inventory for the year
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FIFO Cost of goods sold Cost of goods sold Quantity Unit Cos... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
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