Reference no: EM132437514

Question - Alternative Cost Flows-periodic

Synergy Company began 2020 with 14,000 units of Product X In Its Inventory that cost $7.20 per unit, and it made successive purchases of the product as follows:

Mar. 7 21,000 units @ $8.00 each

May 25 26,000 units@ $10.00 each

Aug. 1 16,500 units@ $14.00 each

Nov. 10 26,000 units@ $15.50 each

The company uses a periodic Inventory system. On December 31, 2020, a physical count disclosed that 10,000 units of Product X remained in inventory.

Required -

1. Calculate the number and total cost of the units available for sale during 2020.

2. Prepare calculations showing the amounts that should be assigned to the 2020 ending Inventory and to cost of goods sold, assuming:

a. FIFO

b. Weighted average cost basis.