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Calculate the cost of goods sold dollar value for B65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO) and the calculations for last in, first out (LIFO) (Templates Provided) Number of Units Unit Cost Sales 100 $66 Beginning inventory Purchased 80 75 Sold 50 $120 Sold 25 125 Ending inventory 105

Calculate the cost of goods sold dollar value for B65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO) and the calculations for last in, first out (LIFO) (Templates Provided) Number of Units Unit Cost Sales 100 $66 Beginning inventory Purchased 80 75 Sold 50 $120 Sold 25 125 Ending inventory 105

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 4PA: Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering...
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Calculate the cost of goods sold dollar value for B65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO) and the calculations for last in, first out (LIFO) (Templates Provided) Number of Units Unit Cost Sales 100 $66 Beginning inventory Purchased 80 75 Sold 50 $120 Sold 25 125 Ending inventory 105
Transcribed Image Text:Calculate the cost of goods sold dollar value for B65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO) and the calculations for last in, first out (LIFO) (Templates Provided) Number of Units Unit Cost Sales 100 $66 Beginning inventory Purchased 80 75 Sold 50 $120 Sold 25 125 Ending inventory 105
Expert Solution
Step 1

LIFO means last in first out where as FIFO means first in first out.

Inventory and cost of goods sold can be value on the basis of FIFO or LIFO basis.

In LIFO , cost of goods sold is valued at latest price and closing inventory at oldest price.

In FIFO , cost of goods sold is valued at oldest price and closing inventory at latest price.

Weighted method means where quantity as taken as weight and average is calculated.

 

 

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