Question: please explain more step by step 9. Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its

please explain more step by step please explain more step by step 9. Beech Soda, Inc. uses a

9. 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) SIO $ 160 Purchase (Jan. 11) SI2 168 Purchase (Jan. 20) SI5 Total 16 14 23 On January 14, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at January 31. 9A. Assuming that Beech Soda uses the FIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is: AED _268_ With FIFO, first in is first sold; 16 from Jan 1, and 9 from Jan 11 = 25 units sold. (16 x 10) + (9 * 12) = 268 9B. Assuming that Beech Soda uses the LIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is: AED_278_ With LIFO, last in is first sold: 14 from Jan 11, and 11 from Jan 1 = 25 units sold. Units from Jan 20 was not available for sale on Jan 14. (14 x 12) + (11 x 10) = 278 9C. Assuming that Beech Soda uses the average cost flow assumption, the cost of goods sold to be recorded at January 14 is (round your calculation to two decimal place) AED _272.50 ((160 + 168)/(16 + 14)) * 25 = (328/30) * 25 = 10.9 x 25 = 272.50 OR Using 328/30 = 10.93 x 25 = 273.33 9D. Assuming that Beech Soda uses the FIFO cost flow assumption, the 28 units of this product in inventory at January 31 have a total cost of: AED_405 (5 * 10) + (23 * 15) = 395 or 673 - 268 = 405 OR Available - Sold = 673 - 268 (part A) = 405 9E. Assuming that Beech Soda uses the LIFO cost flow assumption, the 28 units of this product in inventory at January 31 have a total cost of: AED _395_ (5 x 10) + (23 15) = 395 or 673 - 278 = 395 OR Available - Sold = 673-278 (part B) = 395

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!