Find cost of goods sold using FIFO periodic inventory method

Assignment Help Accounting Basics

Reference no: EM131828099

Question: On December 1, Premium Electronics has three DVD players left in stock. All are identical, all are priced to sell at $85. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $52. Another, with serial #1045, was purchased on November 1 for $48. The last player, serial #1056, was purchased on November 30 for $40

Instructions: (a) Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December, Premium Electronics' year-end.

(b) If Premium Electronics used the specific identification method instead of the FIFO method, how might it alter its earnings by "selectively choosing" which particular players to sell to the two customers? What would Premium's cost of goods sold be if the company wished to minimize earnings? Maximize earnings?

Reference no: EM131828099

Questions Cloud

List five types of resources that computers can share : List at least five types of resources that computers on a local area network or wide area network can share.

Review problem of umatilla bank and trust : Umatilla Bank and Trust is considering giving Pohl Company a loan. Before doing so, it decides that further discussions with Pohl's accountant may be desirable.

Battle of the alamo with the actual historical record : Compare a myth about the Battle of the Alamo with the actual historical record. Why are there differences? Why did the myth survive if it is most likely untrue?

Discuss the changes in the amount of inventory : Determine the inventory turnover and days in inventory for 2016 and 2017. Discuss the changes in the amount of inventory.

Find cost of goods sold using FIFO periodic inventory method : Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December.

What impact does it have on southerners today : What did the "Lost Cause" movement seek to accomplish and why was it so popular? What impact does it have on southerners today?

Compute the cost of the ending inventory : Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Round average unit cost to three decimal.

Reparations imposed on germany by the allies : What were the reparations imposed on Germany by the Allies following World War I? a. payments to be made to the Allies for damage

Policy of neutrality towards the first world war : Describe the forces that did not favor a policy of neutrality towards the First World War?

User Account

All Pages