× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
k
4
c
4
M
3
t
3
i
3
B
3
k
3
m
3
c
3
o
3
l
3
r
3
This topic contains 2 attachments.
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
755872 755872
wrote...
Posts: 40
Rep: 0 0
3 years ago
In its first month of operations, Quilt Company made 3 purchases of merchandise in the following sequence: 300 units at $6, 400 units at $7, and 300 units at $8. There are 400 units on hand at the end of the period. Quilt uses a periodic inventory system. Calculate the cost to be allocated to cost of goods sold and ending inventory under (a) the FIFO method, (b) the weighted average cost method, and (c) the LIFO method.
Read 123 times
2 Replies

Related Topics

Replies
wrote...
#1
Staff Member
3 years ago
Answer:

(1) $2,720

(2) $2,220

Explanation:

Given the following sequence:

300 units at $6, 400 units at $7 and 200 units at $8

(1) FIFO method

Ending inventory = 360 units

Cost of ending Inventory:

= 300 units at $8 + 400 units at $7

= 300 × $8 + 400 × $7

= 2,400 + 2,800

= $5,200

(2) LIFO method

Cost of ending Inventory:

= 300 units at $6 + 60 units at $7

= 300 × $6 + 60 × $7

= 1,800 + 420

= $2,220
755872 Author
wrote...
#2
3 years ago
You are incorrect... these are the answers just don't understand how they got these answers.
 Attached file(s) 
Thumbnail(s):
You must login or register to gain access to these attachments.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  962 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 256
  
 3900
  
 84
Your Opinion
Which is the best fuel for late night cramming?
Votes: 146
Previous poll results: Does a gender wage gap exist in America?