Average cost method Cost ratio (Average cost method) 2. FIFO cost method Cost ratio (FIFO cost...

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Average cost method Cost ratio (Average cost method) 2. FIFO cost method Cost ratio (FIFO cost method) Inventory, beg Purchases Illustration: The invading aliens in the preceding problem put up a department store to sell alien stuflfl to the alien settlers. The alien accountant determined the flollowing inflormation: Cost Total goods avail. for sale at cost Total goods avail. for sale at sales price or at retail TGAS at cost less beg, inventory at cost TGAS at retail less beg. inventory at retail Freight-in Purchase discounts Purchase returns Departmental Transfler-in Markups Markup cancellations Abnormal spoilage Normal spoilage Sales Markdowns Markdowns cancellations Sales returns Sales discounts Employee discounts 300,000 1,180,000 30,000 150,000 4,000 2,000 8,000 Retail 375,000 1,500,000 5,000 3,000 20,000 2,000 6,000 1,000 11,000 400 1,428,000 56,000 2,000 2,600 Requirements: Compute flor the (1) ending inventory and (2) cost of goods sold under each of the flollowing methods: (a) Average cost method and (b) FIFO method. Average cost method Cost ratio (Average cost method) 2. FIFO cost method Cost ratio (FIFO cost method) Inventory, beg Purchases Illustration: The invading aliens in the preceding problem put up a department store to sell alien stuflfl to the alien settlers. The alien accountant determined the flollowing inflormation: Cost Total goods avail. for sale at cost Total goods avail. for sale at sales price or at retail TGAS at cost less beg, inventory at cost TGAS at retail less beg. inventory at retail Freight-in Purchase discounts Purchase returns Departmental Transfler-in Markups Markup cancellations Abnormal spoilage Normal spoilage Sales Markdowns Markdowns cancellations Sales returns Sales discounts Employee discounts 300,000 1,180,000 30,000 150,000 4,000 2,000 8,000 Retail 375,000 1,500,000 5,000 3,000 20,000 2,000 6,000 1,000 11,000 400 1,428,000 56,000 2,000 2,600 Requirements: Compute flor the (1) ending inventory and (2) cost of goods sold under each of the flollowing methods: (a) Average cost method and (b) FIFO method.

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