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Jan. 1 Inventory 16units at $31 $496
Aug. 13 Purchase 6units at $34 $204
Nov. 30 Purchase 10units at $36 360
Available for sale 32units $1,060
There are 10 units of the item in the physical inventory at December 31. The periodic inventory system is used.
Problem 1: Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar).
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Big Sound, a merchandising company specializing in home computer speakers, budgets its monthly cost of goods sold to equal 70% of sales. Its inventory policy calls for ending inventory in each month to equal 20% of the next month’s budgeted cost of g..
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