Question

Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:

	Quantity			Unit Cost			Total Cost
Beginning inventory (Jan. 1)		22		$	20		$	440
Purchase (Jan. 11)		21		$	26			546
Purchase (Jan. 20)		32		$	28			896
Total		75					$	1,882
On January 14, Beech Soda, Inc. sold 34 units of this product. The other 41 units remained in inventory at January 31. a) Assuming that Beech Soda uses the FIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is: a) 806 b)752 c)1062 d)1882 b)Assuming that Beech Soda uses the LIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is: a) 806 b)752 c) 1882 d)1062 c) Assuming that Beech Soda uses the average cost flow assumption, the cost of goods sold to be recorded at January 14 is: (Round your intermediate calculation to one decimal place and final answer to the nearest cent). a) $940.14 b) 1,882.00 c) 778.60 d) 853.17 d) Assuming that Beech Soda uses the FIFO cost flow assumption, the 41 units of this product in inventory at January 31 have a total cost of: a) 1130 b)1076 c)1102 d)1482 e) Assuming that Beech Soda uses the LIFO cost flow assumption, the 41 units of this product in inventory at January 31 have a total cost of: a) 1130 b)1102 c)1122 d)1076

Answer 1

Correct Answer:

A	$                   752
B	$             806.00
C	$             778.60
D	$          1,130.00
E	$          1,076.00

working:

Cost of Goods Available for sale
	Units	Cost per unit	value
Beginning Inventory	22	$                       20.0	$                         440.0
Purchases	21	$                       26.0	$                         546.0
Purchases	32	$                       28.0	$                       896.00
Total	75		$                         1,882

FIFO
Total Units Available for sale			75		$                  1,882
Units Sold			34
Ending Inventory Units			41
Valuation
Cost of Goods Sold		22		$                         20.00	$               440.00
		12		$                         26.00	$                     312
Cost of Goods Sold		34	units		$                     752
Ending Inventory		41	units		$              1,130.0

	LIFO
A	Total Units Available for sale			75		$                  1,882
	Units Sold			34
	Ending Inventory Units			41
	Valuation
	Cost of Goods Sold		21		$                         26.00	546.00
			13		$                         20.00	260.00
B	Cost of Goods Sold		34	units		$               806.00
A-B	Ending Inventory		41	units		$            1,076.00

	Weighted Average
A	Total Units Available for sale			75		$            1,882.00
	Units Sold			34
	Ending Inventory Units			41
	Valuation
	Cost of Goods Sold		34		$                           22.9	$               778.60
B	Cost of Goods Sold		34	units		$               778.60

End of answer.

Please give a thumbs-up, it will be highly appreciated.

Thanks.