Compute the proper cost to be assigned to ending inventory


Question - During April, Wiggins Company sold 900 units of Product X for $10 per unit. Its beginning inventory, purchases, and sales during the month were as follows:

April 1         Beginning Inventory    200 units @ $1

       5         Purchases                   200 units @ $2

       8         Sales                          300 units

       10       Purchases                   200 units @ $3

       15       Purchases                   200 units @ $4

       18       Sales                          300 units

       20       Purchases                   200 units @ $5

       25       Purchases                   200 units @ $6

       28       Sales                          300 units

It was further noted that the ending inventory consisted of 100 units each of April 10th, April 15th, and April 25thpurchases (use this data for the Specific Identification Method only). Compute the proper cost to be assigned to ending inventory, cost of goods sold, and gross margin under each of these methods using the periodic system:

(a) Average cost, (b) FIFO, and (c) LIFO.

You must show your calculations to receive full credit.

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Accounting Basics: Compute the proper cost to be assigned to ending inventory
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