B which costing method produces the highest cost

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Finite Mathematics and Applied Calculus
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Chapter 12 / Exercise 23
Finite Mathematics and Applied Calculus
Costenoble/Waner
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(b) Which costing method produces the highest cost allocation to ending inventory?
On 1 September, Better Office Supplies had an inventory of 30 deluxe pocket calculators at a cost of $20 each. The business uses a perpetual inventory system and FIFO inventory cost flow method. During September, the following transactions occurred: Sept. 6 Purchased 80 calculators at $22 each from Digital Ltd for cash. 9 Paid freight of $88 to We Deliver on calculators purchased from Digital Ltd. 10 Returned two calculators to Digital Ltd for $44 credit because they did not meet specifications. 12 Sold 26 calculators for $33 each to Reader Book Store, terms n/30. 14 Grant credit of $33 to Reader Book Store for the return of one calculator that was not ordered. 20 Sold 30 calculators for $33 each to Mega Ltd, terms n/30. Required Journalise the September transactions, assuming all businesses were registered for GST and the GST rate was 10%.
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Finite Mathematics and Applied Calculus
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Chapter 12 / Exercise 23
Finite Mathematics and Applied Calculus
Costenoble/Waner
Expert Verified
PROBLEM SET BPSB5.3 Rye Sails sells model boats. At the beginning of March, Rye Sails had in beginning inventory 150 model boats with a unit cost of $35. During March Rye Sails made the following purchases of model boats. March 5 350 @ $40 March 21 400 @ $50 March 13 550 @ $45 March 26 150 @ $55 During March, 1350 units were sold. Rye Sails uses a periodic inventory system. Required a.Determine the cost of goods available for sale. b.Determine (1) the ending inventory and (2) the cost of sale under each of the assumed cost flow methods (FIFO, LIFO and average cost). Prove the accuracy of the cost of sale under the FIFO and LIFO methods. c.Explain which cost flow method results in (1) the highest inventory amount for the statement of financial position and (2) the highest cost of sale for the statement of profit or loss?

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