Question

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 210 units at $45 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 275-unit purchase at $50 per unit; the second was a 355-unit purchase at $52 per unit. During the period, it sold 535 chairs.

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 210 units at $45 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 275-unit purchase at $50 per unit; the second was a 355-unit purchase at $52 per unit. During the period, it sold 535 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. b. LIFO. c. Weighted average. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of goods sold Ending inventory

Answer 1

Cost of Goods sold Cost of Ending inventory FIFO 25800 15860 LIFO 27460 14200 Average Cost 26533 15127 Inventory Balance Periodic : FIFO Goods Purchasd Cost of Goods Sold cost of Goods Available for # of Units Cost Per Cost of # of Units Cost Per Unit sales Goods Sold Beginning inventory 210 45 9450 210 45 9450 Purchases First 275 13750 275 50 13750 Second 355 52 18460 50 2600 Totals 8401 41660 535 25800 Unit # of Units Cost Per Ending Unit Inventory 45 50 50 52 305 305 15860 15860

Inventory Balance Cost Per Ending # of Units Unit Inventory 210 45 9450 0/ 50 50 4750 95 052 305 14200 Periodic : LIFO Goods Purchasd Cost of Goods Sold cost of Goods Available for # of Units Cost Per Cost of # of Units Cost Per Unit sales sold Unit Goods Sold Beginning inventory 210 45 9450 0 45 Purchases First 275 50 13750 180 9000 Second 355 18460 355 52 18460 Totals 840 41660 535 27460 Periodic : Weighted Average Goods Purchasd Cost of Goods Sold cost of Goods # of Units Cost Per Cost of # of Units Cost Per Unit Available sold Unit Goods Sold for sales Beginning inventory 210 45 9450 Purchases First 275 50 13750 Second 355 18460 Totals 840 49.595 41660 535 49.595 26533 Inventory Balance # of Units Cost Per Ending Unit Inventory 52 305 49.595 15127