Freeman Company Uses the Periodic Inventory System and Applied LIFO

question 50

Short Answer

Freeman Company uses the periodic inventory system and applied LIFO inventory costing.At the end of the annual accounting period,December 31,2009,the accounting records in inventory showed $$\begin{array} { l c c } \underline { \text { Transactions } } & \underline { \text { Units } } & \underline { \text { Unit Cost } } \\\hline \text { Beginning inventory, Jan. 1, 2009 } & 300 & \$ 20 \\\text { Purchase, Feb. 1 } & 500 & 21 \\\text { Sale, March } 15 \text { (sold at \$20 each) } & ( 400 ) & \\\text { Purchase, May 15 } & 400 & 22 \\\text { Sale, July } 31 \text { (sold at \$25 each) } & ( 500 ) &\end{array}$$ Calculate the following:
(round to the nearest dollar.)
1.Cost of goods available for sale
2.Ending inventory
3.Cost of goods sold

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Definitions:

Pygmy Forest

A unique ecosystem characterized by stunted trees, often found on nutrient-poor, acidic soils.

Cation Exchange

Process in which root cells secrete protons (H+), which replace cations adhering to soil particles, thereby releasing them for absorption by the roots.

Positively Charged

Refers to particles or objects that have more protons than electrons, resulting in a net positive electric charge.

Major Function

The primary role or purpose that something serves or is designed to perform.