Question

Dundas Company's inventory records for its retail division show the following at October 31: (Click the icon to view the accounting records.) At October 31, 11 of these units are on hand. Read the requirements. Requirement 1. Compute cost of goods sold and ending inventory, using each of the following four inventory methods: Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific identification, then (b) average cost, then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.) Number of units 0 Requirements Cost of goods sold Ending inventory 1. Compute cost of goods sold and ending inventory, using each of the following methods: a. Specific identification, with seven $165 units and four $175 units still on hand at the end b. Average cost C. FIFO d. LIFO 2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold? Data Table Print Done Oct 1 Beginning inventory ... 9 units @ $ 165 = $ 1,485 15 Purchase ............. 5 units @ 166 = $ 830 26 Purchase .............. 13 units @ 175 = $ 2,275 Print | Done]

Answer 1

Ending computation of cost of goods sold and Inventory: Total units sold (2017 ) Total nou of units available for sale = less units on hand ce . Ntal units sold oot 27 (1) 16 specific Identification stras cost of goods sold og t adlars = [(art) x $165] + (5X$166) + (13-4 x $ 175] = ($2,735 Ending inventory 5 ( 7* $165) + ( 4x125) = $1,855 bli scop 18 TASUOJA Average cost Hverage cost s utal cost of goods available for sale eurs per unit non of units =) (9x $165)+(5X$166) + ( 13 x $195) 09+5 +13) = $170 per unit b) cost of Ending goods sold inventory 7 168 $170 = 11x $170 = $2,720 1,870

O FIFO I S Cost of goods sold = to Hind (988165) + (5X8166) + (2x $175) - $2,665 nas Ending inventory - pino (114 $145) = $1,921) the loto rut Jous Aro 1 a) LIFO : bon o s cost of goods sold es lolata (13* $175) + 3x8166) = $2,773) Ending inventory motos strona (2x8166) + (9x165) $1,87) 10 + (12 ) Ito FIFO produces the highest produces the lowest cost of goods cost of goods sold sold Due to the prices and inventory units hold price are sold first and change in the with higher value lower on Pnce ce jola later.

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