Question

Ivanhoe Company had a beginning inventory of 108 units of Product RST at a cost of $8 per unit. During the year, purchases were:

Feb. 20		640		units at		$9		Aug. 12		377		units at		$11
May 5		540		units at		$10		Dec. 8		91		units at		$12

Ivanhoe Company uses a periodic inventory system. Sales totaled 1,590 units.

Correct answer icon

Your answer is correct.

(a) Determine the cost of goods available for sale.

The cost of goods available for sale

$

(b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.)

Average Cost

$

eTextbook and Media

List of Accounts

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Your answer is partially correct.

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 0 decimal places, e.g. 150.)

		FIFO		LIFO		AVERAGE-COST
The ending inventory		$		$		$
The cost of goods sold		$		$		$

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Your answer is correct.

Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?

Average-costFIFOLIFO results in the lowest inventory amount for the balance sheet.

Average-costFIFOLIFO results in the lowest cost of goods sold for the income statement.