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Tips inc uses a periodic inventory system Jan 1 Begins g inventor

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Tips inc uses a periodic inventory system.
Jan 1. Begins g inventory 400 units @ $7.00= $2800.
Feb 15 purchase 1000 units @ $7.50 = $7500
June 30 purchase 1400 units @ $8.00 = $11200
Nov 25 purchase 1200 out.it\'s @ $8.20 = $9900
total available for sale in year 4000 units = $31400
At Dec 31, ending inventory of this product consisted of
1300 units. Determine the. Most of year-end inventory and
the cost of goods sold for this product t under each of the
following methods of inventory valuation
Inventory at 12/31. Cost of goods sold
A. Average cost
B. First in first out
C. Last in first out.
Solution
A.
Average unit cost = Cost of goods available for sale / Units
available for sale
=$31,400/4,000 = $7.85
Ending inventory value = Average unit cost * Number of
units as on Dec 31
=$7.85 * 1,300 units = $10,205
Cost of goods sold = Cost of goods available for sale -

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Tips inc uses a periodic inventory system. Jan 1. Begins g inventory 400 units @ $7.00= $2800. Feb 15 purchase 1000 units @ $7.50 = $7500 June 30 purchase 1400 units @ $8.00 = $11200 Nov 25 purchase 1200 out.it\'s @ $8.20 = $9900 total available for sale in year 4000 units = $31400 At Dec 31, ending inventory of this product consisted of 1300 units. Determine the. Most of year -end inventory and the cost of goods sold for this product t under each of the following methods of inventory valuation Inventory at 12/31. Cost of goods sold A. Average cost B. First in first out C. Last in first out. ...
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