Milo Company had a beginning inventory of 400 units of Product Kimbo at a cost of $8 per unit. During the year, purchases were:
Milo Company uses a periodic inventory system. Sales totaled 1,500 units.
Instructions (a) Determine the cost of goods available for sale. (b) Determine (1) The ending inventory (2) The cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (c) Which cost flow method results in? (1) The lowest inventory amount for the balance sheet, (2) The lowest cost of goods sold for the incomestatement?
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