p6-3a - P63A Eddings Company had a beginning inventory of...

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Unformatted text preview: P63A Eddings Company had a beginning inventory of 400 units of Product XNA at a cost of $8.00 per unit. During the year, purchases were: Feb. 20 May 5 600 units @ $9 500 units @ $10 Aug. 12 Dec. 8 300 units @ $11 200 units @ $12Eddings Company uses a periodic inventory system. Sales totaled 1,500 units. Correct. Determine the cost of goods available for sale. $ 19300 Correct. Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average). (Round the unit cost in the average cost method to 2 decimal places. Use the rounded amounts for subsequent calculations. Round final answers to 0 decimal places.) Ending Inventory Cost of Goods Sold FIFO $ 5700 $ 13600 LIFO $ 4100 $ 15200 Average Cost $ 4825 $ 14475 Correct. Which cost flow method results in (1) the lowest inventory amount for the balance sheet, and (2) the lowest cost of goods sold for the income statement? Lowest inventory amount LIFO Lowest cost of goods sold FIFO ...
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