Shown below
is activity for one of the products of Denver Office Equipment: January 1
balance, 500 units @ $55 $27,500
Purchases January
10 500 units @ $60
January 20
1,000 units @ $63
Sales:
January 12
800 units
January 28
750 units
a. Compute
the ending inventory and cost of goods sold assuming Denver uses FIFO.
b. Compute
the ending inventory and cost of goods sold assuming Denver uses LIFO and a
perpetual inventory system.
c. Compute
the ending inventory and cost of goods sold assuming Denver uses average cost
and a periodic inventory system.
d. Compute
the ending inventory and cost of goods sold assuming Denver uses average cost
and a perpetual inventory system.
e. Compute
the ending inventory and cost of goods sold assuming Denver uses LIFO and a
periodic inventory system.
TUTORIAL PREVIEW
a.
Calculation
and cost of goods sold using FIFO method(Periodic):
Units Rate Total cost
Beginning
Inventory 500 x $55
= $27,500
January
10 Purchase 500 x $60 = $30,000
January
20 Purchase 1,000 x $63 = $63,000
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