Question

Problem 6-03A Sheffield Corp. had a beginning inventory of 115 units of Product RST at a cost of $9 per unit. During the year, purchases were: Feb. 20 May 5 660 559 units at units at $10 $11 Aug. 12 Dec. 8 401 115 units at units at $12 $13 Sheffield uses a periodic inventory system. Sales totaled 1,500 units. x Your answer is incorrect. Try again. Determine the cost of goods available for sale. The cost of goods available for sale sale 1 235 235 Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.) Average cost 12.273 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO x Your answer is incorrect. Try again. Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to o decimal places, e.g. 150.) FIFO AVERAGE-COST The ending inventory The cost of goods sold SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 3 4 5 6 7 Part 1) Cost of goods available for sale = No. of units* cost per unit = (115*9)+(660*10)+(559*11)+(401*12)+(115*13) = $ 20091 9 Thus the cost of goods available for sale = $ 20091 11 Part 2) 12 Average cost-cost of goods available for sale/ Total No. of Units available for sale 13 = 20091/(115+660+559+401+115) 14 = 20091/1850 L5 = $ 10.86 17 Thus the average cost = $ 10.86 19 Part 3) 20 No. of units in ending inventory = units available for sale - units sold 21 = 1850-1500 22 = 350 Units 24 FIFO E5 ending inventory = No. fo units in ending inventory * cost per unit 26 = (115*13)+(235*12) 27 =$ 4315

29 Cost of goods sold = total cost of units available for sale - ending inventory FIFO 30 = 20091-4315 31 = 15776 32 33 LIFO 34 ending inventory = No. fo units in ending inventory * cost per unit 35 = (11599)+(235*10) 36 =$ 3385 total cost of units available for sale - ending inventory FIFO 38 Cost of goods sold 39 = 20091-3385 10 = $ 16706 42 Average cost 43 ending inventory = No. of units in ending inventory average cost per unit 44 = 350*10.86 45 =$ 3801 447 Cost of goods sold = No. of units sold* average cost 48 = 1500*10.86 49 $ 16290 51 Final Answer 53 The ending inventory 54 The cost of goods sold FIFO 4315 15776 L IFO 3385 16706 Avergae cost 3801 16290 |