Calculate the Cost of Goods Sold Under Each of the Following

question 17

Short Answer

Calculate the cost of goods sold under each of the following methods given the information below about purchases and sales during the year.Assume a periodic inventory system.Use four decimal places.
$$\begin{array} { l r l l } \text { April } & 1 & \text { Beginning inventory } & 60 \text { units } @ \$ 30 \\& 11 & \text { Purchases } & 80 \text { units @ } \$ 32 \\& 21 & \text { Purchases } & 30 \text { units @ } \$ 35\end{array}$$
Sales for April: 115 units
a)________ FIFO
b)________ LIFO
c)________ Weighted-average

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Definitions:

IRR Method

A financial analysis tool used to evaluate the profitability of investments based on the internal rate of return, which calculates the rate at which the net present value of all cash flows is zero.

Cost of Capital

The yield a corporation needs to generate from its investment initiatives to keep its market valuation steady and draw in financing.

Stand-Alone Project

In capital budgeting, a project with no competition either for the task it is to accomplish or for resources.

Cost of Capital

The rate of return a company must pay to its investors for the use of their capital, essentially the cost of financing and investing in the company's assets.