Question

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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:

QuantityUnit CostTotal Cost

Beginning inventory (Jan. 1) 22 $24 $528

Purchase (Jan. 11) 25 $30  750

Purchase (Jan. 20) 36 $32  1,152

Total 83    $2,430

On January 14, Beech Soda, Inc. sold 38 units of this product. The other 45 units remained in inventory at January 31.

1A. Assuming that Beech Soda uses the FIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is:

1B. Assuming that Beech Soda uses the LIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is:

1C. Assuming that Beech Soda uses the average cost flow assumption, the cost of goods sold to be recorded at January 14 is:

1D. Assuming that Beech Soda uses the FIFO cost flow assumption, the 45 units of this product in inventory at January 31 have a total cost of:

1E. Assuming that Beech Soda uses the LIFO cost flow assumption, the 45 units of this product in inventory at January 31 have a total cost of:

Answer 1

Cordova Learning Series Moths Lab Montal fifo method January 14. TA) Yooin Ussing sold at Calcolate goods Cost of Jan. 14 units sold 38 ggunit sold from beginning inventory e. ig inventory @a4 - 5a8- 16 unit bold from 11an Purchase @ 30 = 480 1008 18 Cost of good sold on 14 Jan in $1008 under Fifo.. vosing LIFO methol. on 14 January Beekh sola has total 47 units to under LIFO methodl Lass unid Purchase sold first do Cast of 38 unit sold on 14 January is a 95 unido @ 30 = 750 13 units @ 94 (beginning = 312 $7062 Todal Cost of goods sold on January 14 in $1062.

Date. ctivity No TIC). Using Average Cast method. 22 unit @ gu (beginning ) = 25 unit @ 30 ( Purchase on 11 Jan) = 598 750 278 $27.19 Aug Cost rerunt = $ 1978 - Jan 14 is = 38 x 27.19 = $1033. 22 goods sold on Do Cost of (Approx) ad Id Calculation of remainning inventary at total cost of 31 January lurchase Gold closing 528 Onte beginning Ijan 22x24= 528 11Jan 25 20 1378 25x30 14 Jan 28 Xay=598 16x30=480 1008 20 Jun 36x32 = 1152 do Cost of 45 unit at 31 January to 81422. Teacher's Signature. -- BYL98 98VZ10 77-lyset