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755872 755872
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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.
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#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.
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