Maynard Company started the year with no inventory. During the year, it purchased two identical inventory items at different times. The first cost per unit $1,100 and the second, $1,200. One of the items was sold during the year.Required:Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory using each of the following inventory cost flow methods:a. LIFOb. FIFOc. Weighted average?Cost of Goods SoldEnding Inventorya) FIFO??b) LIFO??c) Weighted Average??

What will be an ideal response?

?Cost of Goods SoldEnding Inventory
a) FIFO$1,100$1,200
b) LIFO$1,200$1,100
c) Weighted Average$1,150$1,150
The first-in, first-out (FIFO) cost flow method requires that the cost of the items purchased first be assigned to cost of goods sold. The last-in, first-out (LIFO) cost flow method requires that the cost of the items purchased last be charged to cost of goods sold. The weighted-average method first determines the average cost per unit as the total cost of the inventory available divided by the total number of units available, and then multiplies that result by the number of units.

Business

You might also like to view...

Which developmental level is a follower at if she is described as “an enthusiastic beginner” and what leadership style should be used according to the SLII model?

What will be an ideal response?

View
Business

Which of the following is NOT a component of a habit, according to Steven Covey?

A. knowledge B. rewards C. skill D. desire

View
Business

A product purchase decision usually ends when a consumer recognizes his or her specific need or want

Indicate whether the statement is true or false

View
Business

A common characteristic of integer programming models is that they:

a. are easy to solve graphically b. produce the same answer and standard linear programming models c. often produce multiple optimal solutions d. have all of these choices in common

View
Business