B cost of goods sold fifo 14500 lifo 15950 average

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(b) Cost of goods sold:FIFO $14,500LIFO $15,950Average $15,281(a) Determine the cost of goods available for sale.(b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round average unit cost to three decimal places.)(c) Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?(a) Determine the cost of goods available for sale.Date Explanation Units Unit Cost Total Cost-------------------------------------------------------------------------------------------------------------------------Jan. 1 Beginning inventory 200 6 1,200 Jan. 24 Purchase 800 7 5,600 Apr. 12 Purchase 400 8 3,200 Aug. 19 Purchase 600 9 5,400Nov. 30 Purchase 350 10 3,500 -------------------------------------------------------------------------------------------------------------------------Total 2,350 18,900(b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round average unit cost to three decimal places.)FIFO = FIRST-IN, FIRST-OUT(b)(1) Ending InventoryDate Units Unit Cost Total Cost----------------------------------------------------------------------------------Nov. 30 350 10 3,500Aug. 19 100 9 900----------------------------------------------------------------------------------Total 450 4,400
Proof of Cost of Goods SoldDate Units Unit Cost Total Cost----------------------------------------------------------------------------------Jan. 1 200 6 1,200Jan. 24 800 7 5,600 Apr. 12 400 8 3,200Aug. 19 500 9 4,500----------------------------------------------------------------------------------Total 1,900 (= 2,350 - 450) 14,500 (= 18,900 - 4,400)LIFO = LAST-IN, FIRST-OUT(b)(1) Ending InventoryDate Units Unit Cost Total Cost----------------------------------------------------------------------------------Jan. 1 200 6 1,200Jan. 24 250 7 1,750----------------------------------------------------------------------------------Total 450 2,950(b)(2) Cost of Goods SoldCost of goods available for sale 18,900Less: Ending inventory 2,950Cost of goods sold 15,950Proof of Cost of Goods SoldDate Units Unit Cost Total Cost----------------------------------------------------------------------------------Nov. 30 350 10 3,500Aug. 19 600 9 5,400Apr. 12 400 8 3,200Jan. 24 550 7 3,850----------------------------------------------------------------------------------Total 1,900 (= 2,350 - 450) 15,950 (= 18,900 - 2,950)AVERAGE COSTGoods available for sale 18,900Units available for sale 2,350
(c) Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?

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