Synergy Company began 2020 with 19,000 units of Product X in its inventory that cost $7.50 per
Question:
Synergy Company began 2020 with 19,000 units of Product X in its inventory that cost $7.50 per unit, and it made successive purchases of the product as follows:
The company uses a periodic inventory system. On December 31, 2020, a physical count disclosed that 15,000 units of Product X remained in inventory.
Required
1. Prepare a calculation showing the number and total cost of the units available for sale during 2020.
2. Prepare calculations showing the amounts that should be assigned to the 2020 ending inventory and to cost of goods sold, assuming:
a. FIFO
b. Weighted average cost basis (round the average cost per unit to two decimal places).
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:
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann