Fifo cost flow assumption and periodic inventory system


Problem: Inventory flows for Toy Elmo Company for the month of January are as follows:

# of Units    Unit Cost
Beginning inventory*    250    $1.00
Purchases:
January 3                    100    $1.10
January 15                  150    $1.15
January 17                  300    $1.05

Sales:
January  5     200
January 18    100
January 24    150

Assume the same for FIFO, LIFO, and weighted average cost flow assumptions.

Required:

Compute the cost of goods sold and ending inventory for the Toy Elmo Company using the following assumptions:

a. FIFO cost flow assumption and a periodic inventory system
b. LIFO cost flow assumption and a periodic inventory system
c. Weighted average cost flow assumption and a periodic inventory system

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Accounting Basics: Fifo cost flow assumption and periodic inventory system
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