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28 Sep 2019
Lobster Company had a beginning inventory on January 1 of 150 unitsof Product BU-54 at a cost of $20 per unit. During the year, thefollowing purchases were made. Mar. 15, 400 units at $23 Sept. 4,350 units at $26 July 20, 250 units at $24 Dec. 2, 100 units at$29
1,000 units were sold. Lobster Company uses a periodic inventorysystem.
Instructions
(a) Determine the cost of goods available for sale.
(b) Determine (1) the ending inventory, and (2) the cost of goodssold under each of the assumed cost flow methods (FIFO, LIFO, andaverage-cost). Prove the accuracy of the cost of goods sold underthe FIFO and LIFO methods.
(c) Which cost flow method results in (1) the highest inventoryamount for the balance sheet,
and (2) the highest cost of goods sold for the incomestatement?
Lobster Company had a beginning inventory on January 1 of 150 unitsof Product BU-54 at a cost of $20 per unit. During the year, thefollowing purchases were made. Mar. 15, 400 units at $23 Sept. 4,350 units at $26 July 20, 250 units at $24 Dec. 2, 100 units at$29
1,000 units were sold. Lobster Company uses a periodic inventorysystem.
Instructions
(a) Determine the cost of goods available for sale.
(b) Determine (1) the ending inventory, and (2) the cost of goodssold under each of the assumed cost flow methods (FIFO, LIFO, andaverage-cost). Prove the accuracy of the cost of goods sold underthe FIFO and LIFO methods.
(c) Which cost flow method results in (1) the highest inventoryamount for the balance sheet,
and (2) the highest cost of goods sold for the incomestatement?
1,000 units were sold. Lobster Company uses a periodic inventorysystem.
Instructions
(a) Determine the cost of goods available for sale.
(b) Determine (1) the ending inventory, and (2) the cost of goodssold under each of the assumed cost flow methods (FIFO, LIFO, andaverage-cost). Prove the accuracy of the cost of goods sold underthe FIFO and LIFO methods.
(c) Which cost flow method results in (1) the highest inventoryamount for the balance sheet,
and (2) the highest cost of goods sold for the incomestatement?
Irving HeathcoteLv2
28 Sep 2019
Related questions
Larkspur, Inc. had a beginning inventory of 96 units of Product RST at a cost of $8 per unit. During the year, purchases were:
| Feb. 20 | 643 | units at | $9 | Aug. 12 | 411 | units at | $11 | |||||||
| May 5 | 480 | units at | $10 | Dec. 8 | 99 | units at | $12 |
Larkspur, Inc. uses a periodic inventory system. Sales totaled 1,450 units.
Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 150.)
