AFM123 : Inventory Costing - QUESTION.pdf
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Flex Co. uses a periodic inventory system. The following are inventory transactions for the month of January:
1/1 | Beginning inventory | 10,000 units at $3 |
1/5 | Purchase | 5,000 units at $4 |
1/15 | Purchase | 5,000 units at $5 |
1/20 | Sales at $10 per unit | 10,000 units |
Flex uses the average pricing method to determine the value of its inventory. What amount should Flex report as cost of goods sold on its income statement for the month of January?
Brief Exercise 8-8 LIFO method [LO8-4]
Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2018, was $500,000 (25,000 units at $20 each). During 2018, 90,000 units were purchased, all at the same price of $27 per unit. 95,000 units were sold during 2018. Esquire uses a periodic inventory system.
Complete the below table to calculate the December 31, 2018, ending inventory and cost of goods sold for 2018.
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