A Beginning Inventory and Purchases of Computer Parts Follow Required: Determine the Cost of an Ending Inventory of 6

question 66

Short Answer

A beginning inventory and purchases of computer parts follow:
$$\begin{array} { l r } \text { Beginuning inventory } & 10 @ \$ 10 \\\text { First purchase } & 14 @ \$ 12 \\\text { Second purchase } & 8 @ \$ 16\end{array}$$
Required: Determine the cost of an ending inventory of 6 computer parts remaining in the periodic inventory under each of the assumptions listed.Round to three decimal places.
a)________ FIFO
b)________ LIFO
c)________ Weighted-average

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Definitions:

Intragroup Transfer

Transactions between companies that are part of the same corporate group, such as the sale of goods or services, transfer of assets, or sharing of resources.

Inventories

Quantifiable goods or materials held by a company for the purpose of sale in the ordinary course of business, production, or use in creating goods and services.

Depreciable Asset

An asset that decreases in value over time due to use, wear and tear, or obsolescence and can be written off against income.

Useful Life

The estimated period over which an asset is expected to be usable by an entity, or the number of production or similar units expected to be obtained from the asset by an entity.