Compute the cost of goods sold

Reference no: EM131002011

The following data relate to inventory for the year ended December 31, 2007. A physical inventory on December 31, 2007, indicates that 600 units are on hand and that they came from the July 1 purchase.

Date	Description	Numberof Units	Cost per Unit	TotalCost
January 1	Beginning inventory	1,000	$4.00	$ 4,000
February 20	Purchase	800	4.50	3,600
April 1	Purchase	900	4.75	4,275
July 1	Purchase	700	5.00	3,500
October 22	Purchase	500	4.90	2,450
December 10	Purchase	500	5.00	2,500
		4,400		$20,325

Required

Compute the cost of goods sold for the year ended December 31, 2007, and the ending inventory under the following cost assumptions:

a. First-in, first-out (FIFO)

b. Last-in, first-out (LIFO)

c. Average cost (weighted average)

d. Specific identification

Reference no: EM131002011

Questions Cloud

Liquidity of several restaurant companies : With this case, we review the liquidity of several restaurant companies. The restaurant com- panies reviewed and the year-end dates are as follows:

What are the implications for race being a social : Explain the ways in which race is a social construct and is not biological. What are the implications for race being a social reality even though there are virtually no biological differences among humans

Differences between watson and skinner behaviorism : What are the major similarities and differences between Watson and Skinner's behaviorism? From your understanding of psychological principles, which of them had a greater influence in the areas of both research and applied psychology

Find the present value and verify that it makes sense : Suppose we are to receive 12 units at time 2, but will be required to pay out 8 units at time 3. Find the present value, and verify that it makes sense.

Compute the cost of goods sold : Compute the cost of goods sold for the year ended December 31, 2007, and the ending inventory under the following cost assumptions:

What is the smallest payment you would accept : In place of all these cash flows you are offered a single payment made to you at time 1. What is the smallest payment you would accept?

Determine the maximum work that can be extracted from a pond : Determine the maximum work that can be extracted from a pond containing 105 kg of water at 350 K when the temperature of the surroundings is 300 K. Notice that the temperature of water in the pond will be gradually decreasing as energy is extracte..

Ending inventory under the following cost assumptions : Compute the cost of goods sold for the year ended December 31, 2007, and the ending inventory under the following cost assumptions:

How much will the borrower have to pay : Suppose interest rates have dropped to 5%. How much will the borrower have to pay if the lender uses the lower interest rate to calculate the outstanding balance?

User Account

All Pages