l eztomheducationcomhmtpx connect ACCOUNTING allenge 5A Que

? l ezto.mheducation.com/hm.tpx. connect ACCOUNTING allenge 5-A Question 8 fof t 6.00 points Cortez Company sells chairs that are used at computer stations. its beginning inventory of chairs was t units at $00 unit purchase at $08 per unit the second was a 200-unit purchase at $ 270 chars per unit During the year. Cortez made two batch purchases of this chair. The first was a 150- 72 per unit. During the period. i soid equired Determine the amount of product costs that would be allocated to cost of goods sold and ending ?inventory assuming that Cortez uses ai FIFO FIFO Units Unit Cost 100 150 200 608.000 10,200 14.400 30 600 rom beginning inventory From irst purchase 72 rom second purchase Total unit cost i-l inventory Units rom beginning inventory 6.000 O Type here to search

Solution

Units Rate per unit Amount Beginning inventory 100 60 6000 Purchases 1 150 68 10200 Purchases 2 200 72 14400 Cost of goods available for sale 450 68.00 30600 Less units sold 270 Ending inventory 180 Ending inventory Average cost 12240 (180*68) FIFO Units Per unit Total Purchase 2 180 72 12960 Total 180 12960 LIFO Purchase 1 80 68 5440 Beginning inventory 100 60 6000 Total 180 11440 Average FIFO LIFO Cost of goods available for sale 30600 30600 30600 Less Ending inventory 12240 12960 11440 Cost of goods sold 18360 17640 19160