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Question - Synergy Company began 2020 with 17,000 units of Product X in its inventory that cost $7.10 per unit, and it made successive purchases of the product as f..s@ $8.60each May25 29,000 units@&..s@ $13.40each Nov.10 29,000 units@ $14.90each.
The company uses a periodic inventory system. On December 31, 2020, a physical count disclosed that 13,000 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.
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