Can some one please help me with this question? Ziad Company had a beginning inv
ID: 2585932 • Letter: C
Question
Can some one please help me with this question?
Ziad Company had a beginning inventory on January 1 of 75 units of Product 4-18-15 at a cost of $18 per unit. During the year, the following purchases were made.
$27
500 units were sold. Ziad Company uses a periodic inventory system.
Determine the cost of goods available for sale.
Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.23.)
Average cost per unit $____________________
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). (Round answers to 0 decimal places, e.g. 1,250.)
FIFO LIFO Average-Cost
The ending inventory $_____________ $____________ $_______________
The cost of goods sold $_____________ $____________ $_______________
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?
__________ results in the highest inventory amount, $___________________
__________ produces the highest cost of goods sold, $___________________
Mar. 15 200 units at $21 Sept. 4 175 units at $24 July 20 125 units at $22 Dec. 2 50 units at$27
Explanation / Answer
15-Mar 200 21 4200 20-Jul 125 22 2750 04-Sep 175 24 4200 02-Dec 50 27 1350 625 13850 Cost of goods available for sale 13850 Ending inventory FIFO COGS 04-Sep 75 24 1800 02-Dec 50 27 1350 125 3150 10700 LIFO From beginning inventory 75 18 1350 15-Mar 50 21 1050 125 2400 11450 Average cost method 13850/625 22.16 125 2770 11080 1) the highest inventory amount for the balance sheet FIFO 2)the highest cost of goods sold for the income statement = 11450