Please explain FIFO LIFO AVG cost please Remsen Company Inc. had a beginning inv

ID: 2504472 • Letter: P

Question

Please explain FIFO LIFO AVG cost please

Remsen Company Inc. had a beginning inventory of 124 units of Product MLN at a cost of $10 per unit. During the year, purchases were: Remsen Company uses a periodic inventory system. Sales totalled 1,859 units. Your answer is correct. Determine the cost of goods available for sale. Calculate average cost per unit. (Round answer to 3 decimal places, e.g. 5.125.) Click if you would like to Show Work for this question: Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, UFO, and average-cost). (Round answers to 0 decimal places, e.g. 125.)

Explanation / Answer

A)Cost of goods available for sale = Beginning inventory + Total purchases

= (124*10) + [(743*11) + (620*12) + (496*14) + (124*15)]

= 1240 + 24417

= $25657

B)Average cost per unit = Cost of goods available for sale/Total no. of units

= 25657/(124+743+620+496+124)

= 25657/2107

= $12.177 p.u.

Note:-

Ending inventory units = Total no. of units