Toso Company uses the periodic inventory system to account for inventories. Information related to Toso Company's inventory

Question:

Toso Company uses the periodic inventory system to account for inventories. Information related to Toso Company's inventory at October 31 is given below:

October 1 Beginning inventory 400 units @ $10.00 = $ 4,000

8 Purchase 800 units @ $10.40 = 8,320

16 Purchase 600 units @ $10.80 = 6,480

24 Purchase 200 units @ $11.60 = 2,320

Total units and cost 2,000 units $21,120

Instructions

1. Show computations to value the ending inventory using the FIFO cost assumption if 550 units remain on hand at October 31.

2. Show computations to value the ending inventory using the weighted-average cost method if 550 units remain on hand at October 31.

3. Show computations to value the ending inventory using the LIFO cost assumption if 550 units remain on hand at October 31.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...

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Survey of Accounting

ISBN: 978-0078110856

3rd Edition

Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi

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Question Posted: May 06, 2013 05:32 AM

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Toso Company uses the periodic inventory system to account for inventories. Information related to Toso Company's inventory

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1 Computation of the Ending Inventory Value Using FIFO Particulars Units Rate Amount October 1 Begin...View the full answer

Survey of Accounting

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