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Q. Determine the cost of ending inventory?
The company suppose that the 20 units in inventory consist of 10 units purchased December 21 and 10 units purchased October 12. The overall cost of ending inventory is USD 179 and the cost of goods sold is USD 511.
We show the relationship among the cost of goods sold and the cost of ending inventory under FIFO using periodic inventory procedure. The 80 units in cost of goods accessible for sale consist of the beginning inventory and all of the purchases during the period. In FIFO the ending inventory of 20 units consists of the most recent purchases 10 units of the December 21 purchase and 10 units of the October 12 purchase costing USD 179. We suppose the beginning inventory and other earlier purchases have been sold during the period, representing the cost of goods sold of USD 511.
What is the implication of applying accounting concepts wrongly
WHAT DO YOU MEAN BY CUM- INTEREST PRICE
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