### [solution] » (b) Determine the ending inventory and cost of goods sold under each of the assumed cost flow met

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The Question

(b) Determine the ending inventory and cost of goods sold under each of the assumed cost flow methods.  Prove the accuracy of the cost of goods sold under FIFO and LIFO.

FIFO

 (1) Ending Inventory (2) Cost of Goods Sold Date Units Unit Cost Total Cost Cost of goods available for sale 77,100 5200 3 15600 Less: ending inventory 42,100 5300 5 26,500 Total 10,500 Total 42,100 Cost of Goods Sold Amount

 Proof of Cost of Goods Sold (FIFO) Date Units Unit Cost Total Cost Amount Amount Amount Amount Amount Amount Amount Amount Total Amount Total Amount

LIFO

 (1) Ending Inventory (2) Cost of Goods Sold Date Units Unit Cost Total Cost Cost of goods available for sale Amount Amount Amount Less: ending inventory Amount Amount Amount Total Amount Total Amount Cost of Goods Sold Amount

 Proof of Cost of Goods Sold (LIFO) Date Units Unit Cost Total Cost Amount Amount Amount Amount Amount Amount Amount Amount Total Amount Total Amount

AVERAGE COST (Round to the nearest decimal, i.e., \$1.01)

 (1) Ending Inventory (2) Cost of Goods Sold Units Unit Cost Total Cost Cost of goods available for sale Amount Amount Amount Less: ending inventory Amount Total Amount Total Amount Cost of Goods Sold Amount

(c) Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?

Problem 6-3B

(a) Determine the Cost of Goods Available for Sale

 Date Explanation Units Unit Cost Total Cost Total

#### Solution details

Solution #00020369

##### [solution] » (b) Determine the ending inventory and cost of goods sold under each of the assumed cost flow met.zip

This paper was answered on 14-Oct-2020

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