Consider the Following Inventory Information for Last Year The Company Uses a Periodic Inventory System

question 60

Essay

Consider the following inventory information for last year:
$$\begin{array} { | l | r | r | } \hline & \text { Number of units } & \text { Cost per unit } \\\hline \text { Beginning inventory, Jan 1 } & 2,500 & \$ 130 \\\hline \text { Purchase, March } & 10,000 & 100 \\\hline \text { Purchase, July } & 5,000 & 90 \\\hline \text { Purchase, October } & 7,500 & 80 \\\hline \text { Goods available for sale } & 25,000 & \\\hline\end{array}$$ The company uses a periodic inventory system. The year-end inventory count indicated 5,300 units left in inventory.
Required:
Using the first-in, first-out (FIFO)method, calculate the ending inventory value and the cost of goods sold for the year.

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Definitions:

Certificate

A document officially recognizing a certain achievement, qualification, or standard, often issued after the completion of educational courses or training.

Guaranteed Payment

A payment type in partnerships where a partner is assured a certain amount regardless of the firm's profitability.

Accounting Process

The systematic series of steps followed in the accounting profession to track and record financial transactions and prepare financial statements.

Systematic Recording

The organized and consistent documentation of data or observations according to a defined procedure or method.