Jones Company sells exercise bikes. Its beginning inventory was 100 units at $200 per unit. During the year, Jones made two purchases of the bikes: first, a 300-unit purchase at $220 per unit, and then 200 units at $250 per unit. The ending inventory for the year was 250 units.Required:Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Jones uses each of the following inventory cost flow methods:a) FIFOb) LIFOc) Weighted average(Round intermediate calculations to two decimal places. Round final answers to whole dollars.)?Cost of Goods SoldEnding Inventorya) FIFO??b) LIFO??c) Weighted Average??

What will be an ideal response?


?Cost of Goods SoldEnding Inventory
a) FIFO$75,000$61,000
b) LIFO$83,000$53,000
c) Weighted Average$79,335$56,668
?Cost of Goods SoldEnding Inventory
a) FIFO$75,000 (100 × $200) +
(250 × $220)
$61,000 (200 × $250) +
(50 × $220)
b) LIFO$83,000 (200 × $250) +
(150 × $220)
$53,000 (100 × $200) + 
(150 × $220)
c) Weighted Average$79,335 (350 × $226.67)$56,668 (250 × $226.67)
Average cost per unit: [(100 × $200) + (300 × $220) + (200 × $250)] ÷ 600 = $226.67

Business

You might also like to view...

Some companies require workers to create reports of their finding to transfer knowledge into manageable _____.

A. folders B. dictionaries C. online resources D. indexes

Business

Because SANs offload I/O traffic from the LAN, lower performance results

Indicate whether the statement is true or false

Business

Which of the following companies is the top software producer?

A) Microsoft B) IBM C) Apple D) Hewlett-Packard E) Oracle

Business

Mustang Corporation reports the following for the month of April:     Finished goods inventory, April 1$30,600? Finished goods inventory, April 30 25,000? Total cost of goods manufactured 116,400?  The cost of goods sold for April is:

A. $122,000. B. $60,800. C. $171,200. D. $147,000. E. $110,800.

Business