Beech Soda, Inc. 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 (Jan. 1)		22		$	20		$	440
Purchase (Jan. 11)		21		$	26			546
Purchase (Jan. 20)		32		$	28			896
Total		75					$	1,882

On January 14, Beech Soda, Inc. sold 34 units of this product. The other 41 units remained in inventory at January 31.

a) Assuming that Beech Soda uses the FIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is: 

a) 806 

b) 752 

c) 1062 

d) 1882

b) Assuming that Beech Soda uses the LIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is: 

a) 806 

b) 752 

c) 1882 

d) 1062

c) Assuming that Beech Soda uses the average cost flow assumption, the cost of goods sold to be recorded at January 14 is: (Round your intermediate calculation to one decimal place and final answer to the nearest cent). 

a) $940.14 

b) 1,882.00 

c) 778.60 

d) 853.17

d) Assuming that Beech Soda uses the FIFO cost flow assumption, the 41 units of this product in inventory at January 31 have a total cost of: 

a) 1130 

b) 1076 

c) 1102 

d) 1482

e) Assuming that Beech Soda uses the LIFO cost flow assumption, the 41 units of this product in inventory at January 31 have a total cost of: 

a) 1130 

b) 1102 

c) 1122 

d) 1076

Answer rating: 100% (QA)

Correct Answer A 752 B 80600 C 77860 D 113000 E 107600 working Cost of Goods Availa... View the full answer