Seneca Co. began year 2016 with 6,500 units of product in its January 1 inventory costing $35
Question:
Seneca Co. began year 2016 with 6,500 units of product in its January 1 inventory costing $35 each. It made successive purchases of its product in year 2016 as follows. The company uses a periodic inventory system. On December 31, 2016, a physical count reveals that 8,500 units of its product remain in inventory.
Jan. 4 . . . . . . . . . . 11,500 units @ $33 each
May 18 . . . . . . . . .13,400 units @ $32 each
July 9 . . . . . . . . . .11,000 units @ $29 each
Nov. 21 . . . . . . . . .7,600 units @ $27 each
Required
1. Compute the number and total cost of the units available for sale in year 2016.
2. Compute the amounts assigned to the 2016 ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weighted average. (Round all amounts to cents.)
Ending InventoryThe 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 =...
Step by Step Answer:
Financial Accounting Information for Decisions
ISBN: 978-1259533006
8th edition
Authors: John J. Wild