The first-in, first out method of costing inventory is based on the assumption that costs should...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The first-in, first out method of costing inventory is based on the assumption that costs should be charged against revenue in the order in which they were incurred. Hence the inventory remaining is assumed to be made up of the most recent costs. The illustration of the application of this method is based on the following data for a particular commodity January I March 10 Sept. 21 Nov. 18 inventory purchase purchase purchase Available for sale during year 1.000 200 300 400 100 units at $9 units at $10 units at $11 units at $12 $1,800 3,000 4,400 1.200 S10,400 The physical count on December 31 shows that 300 units of the particular commodity are on hand. REQUIRED: USING FIFO, LIFO and AVERAGE METHODS, DETERMINE THE COST OF GOODS SOLD and THE COST OF ENDING INVENTORY (18 points). 18 FIFO METHOD Last-in, First Out Method (LIFO) Average Cost Method The first-in, first out method of costing inventory is based on the assumption that costs should be charged against revenue in the order in which they were incurred. Hence the inventory remaining is assumed to be made up of the most recent costs. The illustration of the application of this method is based on the following data for a particular commodity January I March 10 Sept. 21 Nov. 18 inventory purchase purchase purchase Available for sale during year 1.000 200 300 400 100 units at $9 units at $10 units at $11 units at $12 $1,800 3,000 4,400 1.200 S10,400 The physical count on December 31 shows that 300 units of the particular commodity are on hand. REQUIRED: USING FIFO, LIFO and AVERAGE METHODS, DETERMINE THE COST OF GOODS SOLD and THE COST OF ENDING INVENTORY (18 points). 18 FIFO METHOD Last-in, First Out Method (LIFO) Average Cost Method
Expert Answer:
Answer rating: 100% (QA)
FIFO Method FirstIn FirstOut Under the FIFO method it is assumed that the items sold are the ones th... View the full answer
Related Book For
Computer Architecture A Quantitative Approach
ISBN: 978-8178672663
5th edition
Authors: John L. Hennessy, David A. Patterson
Posted Date:
Students also viewed these accounting questions
-
Determine the cost of goods sold for the period. Refer to E9.12. Using the following information, determine the cost of goods manufactured and the ending direct materials inventory balance for Steele...
-
The LRU replacement policy is based on the assumption that if address A1 is accessed less recently than address A2 in the past, then A2 will be accessed again before A1 in the future. Hence, A2 is...
-
1 a. Intrusion detection is based on the assumption that the behavior of the intruder differs from that of a legitimate user in ways that can be quantified. Of course, we cannot expect that there...
-
An amplifier has three cascaded stages of amplification, each having available power gain of 10 dB and noise figure of 3 dB. i) ii) Calculate the noise factor (ratio), and noise figure (dB). If the...
-
On January 1, 2011, Sherwood Company, an 80% owned subsidiary of Paradise Company, sold to Paradise Company equipment with a book value of $600,000 for $840,000. The equipment had an estimated...
-
On 1 April 2023, Pedantic acquired 60% of the equity share capital of Sophistic in a share exchange of two shares in Pedantic for three shares in Sophistic. The issue of shares has not yet been...
-
With reference to the example on page 389 , suppose one additional observation \(y_{25}=8\) is available using formula \(B\). Construct the analysis of variance table and test the equality of the...
-
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $210,000 in cash. The book value of Kinman's net assets on that date was $400,000, although...
-
Emboldened by the growing online presence of their fellow white supremacists, the organizers of the 2017 Unite the Right rally expanded their activities this year. This year's rally spanned 10 days...
-
The January 22, 2008, press release of the Federal Open Market Committee (FOMC) states that the FOMC "decided to lower its target for the federal funds rate by 75 basis points to 3 percent." The...
-
The contents of the three urns are given below Urn 1 - 4 black balls, 4 red balls Urn 2 - 3 black balls, 5 red balls Urn 3 - 5 black balls, 3 red balls A n urn is chosen at random and a ball is drawn...
-
Analyze the events surrounding the sale of FHs land and buildings. Is it a subsequent event? If so, which type? Fabrication Holdings Ltd. (FH) has been a client of KFP Partners for many years. You...
-
Using a semiannually compounded yield of \(4 \%\) p.a., numerically or via evaluating the formula, compute the PV01 of (a) \(\$ 1\) million 5 -year zero-coupon bond (b) \(\$ 1\) million 5 -year \(4...
-
In 2016, Susan Christian transferred a machine with a fair market value of \(\$ 30,000\) and an adjusted basis of \(\$ 40,000\) to JPC Corporation in return for 60 shares of stock. The stock...
-
Within a clients IT system, supplier information is contained in a supplier master file (SMF). Each supplier has a unique supplier code. If the purchasing clerk attempts to place an order from a...
-
Using the bisection method, compute the semiannual yield of a 5-year bond paying a semiannual coupon of \(2 \%\) per annum and trading at \(98 \%\). Start with bracketing levels of \(0 \%, 10 \%\),...
-
* SHOW ALL WORKING OUT ON EXCEL Again, the original information regarding IIP's has been repeated below. - Customers pay \( \$ 923.92965978084 \) to buy an IIP. - The IIP will pay out \( \$ 48 \) at...
-
How has the globalization of firms affected the diversity of their employees? Why has increased diversity put an additional burden on accounting systems?
-
Assume a GPU architecture that contains 10 SIMD processors. Each SIMD instruction has a width of 32 and each SIMD processor contains 8 lanes for single-precision arithmetic and load/store...
-
Newer processors such as Intels i7 Sandy Bridge include support for AVX vector/multimedia instructions. Write a dense matrix multiply function using single-precision values and compile it with...
-
Assume that we have a function for an application of the form F(i, p), which gives the fraction of time that exactly i processors are usable given that a total of p processors is available. That...
-
Try to identify the class in the stable design pattern for culture.
-
Try to connect those classes together to form a class diagram.
-
Consider a scenario where your laptop has stopped working and you take it to a repair center. The vendor asks for a huge sum of money, but you negotiate with him the price for repair. Create a class...
Study smarter with the SolutionInn App