Question

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 110 units at $50 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 178-unit purchase at $57 per unit; the second was a 216-unit purchase at $60 per unit. During the period, it sold 300 chairs.

Required
Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses

a. FIFO:
  

Cost of Goods Sold FIFO Units Unit Cost From beginning inventory From first purchase From second purchase Total 110 @ S 178 @ 12 @ 300 50ー 571 = 60F 5,500 10,146 720 16,366

b. LIFO:
  

c. Weighted average: (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
  

Answer 1

B) LIFO (Last in First Out) Cost of LIFO From Second Purchases From First Purchases Units unit Cost Goods Sold 216 84 300 60 57 12960 4788 17748 Total Ending LIFO From First Purchases From Beginning Inventory Units unit Cost Inventory 94 110 204 57 50 5358 5500 10858 Total