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 Sold | Ending Inventory |
| a) FIFO | $75,000 | $61,000 |
| b) LIFO | $83,000 | $53,000 |
| c) Weighted Average | $79,335 | $56,668 |
| ? | Cost of Goods Sold | Ending 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) |
Business
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