A company uses the periodic inventory system to account for inventories. Information related to the company’s inventory for the month of October is given below:
| Date | Units | Unit Cost | Total Cost |
|---|---|---|---|
| Beginning | 150 | 2.20 | 330 |
| Oct. 2 | 600 | 2.40 | 1,440 |
| Oct. 10 | 500 | 2.50 | 1,250 |
| Oct. 17 | 500 | 2.60 | 1,300 |
| Oct. 28 | 700 | 2.70 | 1,890 |
During October the company sold 1,400 units at $6.00 per unit.
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Determine the value of Cost of Goods Sold using the Average Cost Method of inventory valuation.
- $2,661
- $3,472
- $3,690
- $3,548
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Determine Gross Profit for the month of October using the FIFO cost assumption.
- $4,990
- $4,710
- $5,600
- $3,410
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Determine Ending Inventory using the LIFO cost assumption
- $2,800
- $3,410
- $2,520
- $,3690
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The Rest Of TheVideos
| 1 | Not completed | COGS and Inventory | 3 min |
| 2 | Locked | Net Sales | 11 min |
| 3 | Not completed | Perpetual vs Periodic | 8 min |
| 4 | Locked | FOB Shipping? | 9 min |
| 5 | Locked | Transportation In | 9 min |
| 6 | Locked | COGS | 7 min |
| 7 | Locked | Drawbacks to Periodic | 7 min |
| 8 | Locked | Specific Identification | 3 min |
| 9 | Locked | Weighted Average | 5 min |
| 10 | Locked | FIFO and LIFO | 21 min |
| 11 | Locked | Estimating with Gross Profit | 8 min |
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Topic 5Practice Problems
| Click Here to View All Problems at Once | View | ||
| 1 | Not completed | Consignment Inventory | Easy |
| 2 | Locked | FOB Destination | Easy |
| 3 | Not completed | Inventory Set Aside | Easy |
| 4 | Locked | Loss On Inventory | Easy |
| 5 | Locked | FOB Shipping | Moderate |
| 6 | Locked | FOB Shipping | Moderate |
| 7 | Locked | Inventory Costing You are here. | Moderate |
| 8 | Locked | The Effect of Inventory Errors | Hard |