Question

Tips inc uses a periodic inventory system.

Jan 1. Begins g inventory 400 units @ $7.00= $2800.

Feb 15 purchase 1000 units @ $7.50 = $7500

June 30 purchase 1400 units @ $8.00 = $11200

Nov 25 purchase 1200 out.it’s @ $8.20 = $9900

total available for sale in year 4000 units = $31400

At Dec 31, ending inventory of this product consisted of 1300units. Determine the. Most of year-end inventory and the cost ofgoods sold for this product t under each of the following methodsof inventory valuation

Inventory at 12/31. Cost of goods sold

A. Average cost

B. First in first out

C. Last in first out.



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