2. Beech Soda, Incorporated uses a perpetual inventory system. The company's beginning inventory of a particular...

Transcribed Image Text:

2. Beech Soda, Incorporated uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Quantity Unit Cost Total Cost Beginning inventory (January 1) 25 Purchase (January 11) Purchase (January 20) Total 2232 $ 10 $ 250 20 $ 20 400 $ 25 750 $ 1,400 On January 14, Beech Soda, Incorporated sold 32 units of this product. The other 43 units remained in inventory at January 31. i) Assuming that Beech Soda uses the first-in, first-out (FIFO) cost flow assumption: a. The cost of goods sold to be recorded at January 14 is: b. The cost of ending inventory at January 31 is: $ ii). Assuming that Beech Soda uses the Last-in, first-out (LIFO) cost flow assumption: a. The cost of goods sold to be recorded at January 14 is: b. The cost of ending inventory at January 31 is: Page 13/15 2. Beech Soda, Incorporated uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Quantity Unit Cost Total Cost Beginning inventory (January 1) 25 Purchase (January 11) Purchase (January 20) Total 2232 $ 10 $ 250 20 $ 20 400 $ 25 750 $ 1,400 On January 14, Beech Soda, Incorporated sold 32 units of this product. The other 43 units remained in inventory at January 31. i) Assuming that Beech Soda uses the first-in, first-out (FIFO) cost flow assumption: a. The cost of goods sold to be recorded at January 14 is: b. The cost of ending inventory at January 31 is: $ ii). Assuming that Beech Soda uses the Last-in, first-out (LIFO) cost flow assumption: a. The cost of goods sold to be recorded at January 14 is: b. The cost of ending inventory at January 31 is: Page 13/15