Determine the cost of goods available for sale

Reference no: EM13124802

Lobster Company had a beginning inventory on January 1 of 150 units of Product BU-54 at a cost of $20 per unit. During the year, the following 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 inventory system.

Instructions

(a) Determine the cost of goods available for sale.

(b) Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods.

(c) Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?

Reference no: EM13124802

Questions Cloud

Illustrate what is leo lion corporation predetermined : Leo Lion Corporation allocates manufacturing overhead based on machine hours. Illustrate what is Leo Lion Corporation's predetermined manufacturing overhead cost (round to the nearest penny)?

Consolidating financial statements : Intercompany transactions are very important in the consolidation process. Choose an intercompany transaction. Discuss the effects of intercompany transactions when consolidating financial statements. Your discussion should include the effects on ..

Linear functions in real life : What is the formula for the volume of a rectangular solid? Find an object in your residence that has the shape of a rectangular solid. Measure and record the length, width, and height of your object in either centimeters

Find mean and standard deviation for numbers of boys : Find the mean and standard deviation for the numbers of boys in groups of 51. b) Is the result of 39 boys unusual? Does it suggest that the gender-selection method appears to be effective?

Determine the cost of goods available for sale : Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods.

Give the journal entry to record direct and indirect labour : Leo Lion Corporation incurred manufacturing wages of $17,000, 55% of which were direct labor charges and 45% indirect labor charges. In a single journal entry give the journal entry to record the direct and indirect labor incurred.

Find minimum sample size needed to estimate : Find the minimum sample size needed , using a prior study that found that 26% of the respondants said they planned to travel outside the US in next 12months.

What the general rules under us gaap : The sales price that is stated in the agreement for this combined product is $500,000 and is to be paid upon delivery of the software.

Linear equations as matrices : In Example 3 of Section 2.5, the text shows how to write a system of linear equations using matrix notation. You can similarly write a linear programming problem in matrix notation.

User Account

All Pages