The Following Are Data Available for Blue Grass for the Month

question 38

Essay

The following are data available for Blue Grass for the month of June: $$\begin{array} { | l | r | l | } \hline \text { Sales } & 1,200 & \text { units } \\\hline \text { Beginning inventory } & 300 & \text { units } @ \$ 4.00 \\\hline \text { Purchases, in chronological order } & 600 & \text { units } @ \$ 4.20 \\\hline & 400 & \text { units @ \$4.40 } \\\hline & 500 & \text { units } @\$ 4.50 \\\hline\end{array}$$ (a.) Calculate cost of goods sold and ending inventory under the following cost flow assumptions:
(1.) Weighted-average
(2.) FIFO
(3.) LIFO
(b.) Assume net income using the weighted average cost flow assumption was $6,400. Calculate net income under FIFO and LIFO.

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Definitions:

Evaluate

The process of determining the value of a mathematical expression or equation.

Given

A term used in mathematics and logic to denote something that is assumed to be true or is provided as part of the problem statement.

Simplify

To simplify a mathematical expression or problem to its most basic version.

Competitive Output Markets

Markets where multiple firms sell similar or identical products, and prices are determined through competition among sellers.