Which cost flow method results in the lowest inventory

Reference no: EM13586239

Smythe Company Inc. had a beginning inventory of 200 units of Product ERV at a cost of $6 per unit. During the year, purchases were: Jan. 24 800 units at $7 Aug. 19 600 units at $ 9 Apr. 12 400 units at $8 Nov. 30 350 units at $10 Smythe Company uses a periodic inventory system. Sales totaled 1,900 units. Instructions

(a) Determine the cost of goods available for sale.

(b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round average unit cost to three decimal places.)

(c) Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?

Reference no: EM13586239

Questions Cloud

Prepare journal entries in general journal form to record : during the fiscal year ended december 31 swanson corporation engaged in the following transactions involving notes

I 2000 277 of incoming freshmen characterized their : question in 2000 27.7 of incoming freshmen characterized their political views as liberal 51.9 as moderate and 20.4 as

When you tell a coworker that you think that another : suppose that you express your discomfort with a certain action or conduct because you consider it to be unethical. when

Compare the nucleoid area prokaryotic to a nucleus : the discussion board db is part of the core of online learning. classroom discussion in an online environment requires

Which cost flow method results in the lowest inventory : smythe company inc. had a beginning inventory of 200 units of product erv at a cost of 6 per unit. during the year

After paying taxes the malaysian subsidiary repatriates its : 1. hoosier industries is a u. s. multinational corporation with two wholly owned subsidiaries one in malaysia and one

Lifetime distribution markets classic childrens books at : lifetime distribution markets classic childrens books. at the beginning of june lifetime had in beginning inventory

On may 31 2010 james logan company had a cash balance per : on may 31 2010 james logan company had a cash balance per books of 6781.50. the bank statement from farmers state

Prepare a schedule that converts dr accardos excess of cash : jill accardo m.d. maintains the accounting records of accardo clinic on a cash basis. during 2014 dr. accardo collected

User Account

All Pages