Compute the cost of goods sold

Reference no: EM131002053

The following data relate to inventory for the year ended December 31, 2007:

Date	Description	Numberof Units	Cost per Unit	TotalCost
January 1	Beginning inventory	400	$5.00	$ 2,000
March 1	Purchase	1,000	6.00	6,000
August 1	Purchase	200	7.00	1,400
November 1	Purchase	200	7.50	1,500
		1,800		$10,900

A physical inventory on December 31, 2007, indicates that 400 units are on hand and that they came from the March 1 purchase.

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: EM131002053

Questions Cloud

Various currency exchange policies effect global trade : Do you think governments (including your own) should be allowed to use monetary easing policies to promote economic growth? (You can refer to your own research or the attached article "Is China Sparking A Global Currency War?". How do the various cur..

What leadership changes will be most important : What are the most significant leadership trends that require a change in leadership approaches by 2020? What leadership changes will be most important?

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

Could the us duplicate canadas better performance : Canada has a private market for the provision of health services, and until about 1970, spent the same % of GDP as the US on healthcare. Since that time, however, the rate of healthcare inflation in Canada is far lower than in the US. Does this mean ..

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 would happen to world welfare : What would happen to world welfare if the U.S. paid exporters a subsidy of $5 for every pair of blue jeans they sold to Canada, but Canada charged a $5 countervailing duty on every pair imported into Canada?

Produce the biggest troubles for your small business : Develop a plan on how your company would justify the government to award your company the contract when the form of this contracting supports larger companies.

Simon bolivar on government in latin america : Read "Simon Bolivar on Government in Latin America" (20-1a). In his Jamaica Letter, Simon Bolivar argues that the political and social circumstances of Latin American independece are unique. What does he mean by that? Is he convincing in his claim? W..

Compute the days sales in receivables : a. Compute the days' sales in receivables. b. Compute the days' sales in inventory, using the cost figure. c. Compute the days' sales in inventory, using the replacement cost for the inventory and the cost of goods sold.

User Account

All Pages