The following data are available for Sellco for the fiscal year ended on January 31, 2014: Required:
Question:
The following data are available for Sellco for the fiscal year ended on January 31, 2014:
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Required:
a. Calculate cost of goods sold and ending inventory under the following cost flow assumptions (using a periodic inventory system):
1. FIFO.
2. LIFO
3. Weighted average. Round the unit cost answer to two decimal places and ending inventory to the nearest $10.
b. Assume that net income using the weighted-average cost flow assumption is $116,000. Calculate net income under FIFO and UFO.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Step by Step Answer:
a The cost flow assumption of FIFO or first in first out is the allocation of the costs of the first inventory purchased to the cost of goods sold first while LIFO cost flow assumption allocates the c...View the full answer
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