Average cost = $16,800 / 1,700 units = $9.94/unit
Cost of goods sold = 1,500 units * $9.94/unit = $14,890
Ending inventory = 1,700 units - 1,500 units
(a) Determine the cost of goods available for sale.
Beginning inventory = 100 units * $8/unit = $800
Purchases:
February 20 = 600 units * $9/unit = $5,400
May 5 = 500 units * $10/unit = $5,000
August 12 = 400 units * $11/unit = $4,400
December 8 = 100 units * $12/unit = $1,200
Total cost of goods available for sale = $800 + $5,400 + $5,000 + $4,400 + $1,200 = $16,800
(b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round average unit cost to three decimal places.)
FIFO
Under the FIFO method, the first units in are the first units sold. So, the ending inventory will consist of the latest units purchased.
The cost of goods sold is calculated as follows:
Units sold = 1,500 units
Beginning inventory = 100 units
Purchases:
February 20 = 600 units
May 5 = 500 units
August 12 = 400 units
December 8 = 100 units
The ending inventory will consist of the 100 units from December 8, the 400 units from August 12, and the 100 units from May 5.
Cost of goods sold = $5,400 + $5,000 + $1,200 = $11,600
Ending inventory = $100 + $400 + $100 = $600
To prove the accuracy of the cost of goods sold under the FIFO method, we can add up the cost of the beginning inventory and the purchases, and subtract the cost of the ending inventory. This should equal the cost of goods sold.
$800 + $5,400 + $5,000 + $4,400 - $600 = $11,600
LIFO
Under the LIFO method, the last units in are the first units sold. So, the ending inventory will consist of the earliest units purchased.
The cost of goods sold is calculated as follows:
Units sold = 1,500 units
Beginning inventory = 100 units
Purchases:
February 20 = 600 units
May 5 = 500 units
August 12 = 400 units
December 8 = 100 units
The ending inventory will consist of the 100 units from the beginning inventory and the 600 units from February 20.
Cost of goods sold = $5,000 + $4,400 + $1,200 = $10,600
Ending inventory = $800 + $100 = $900
To prove the accuracy of the cost of goods sold under the LIFO method, we can add up the cost of the beginning inventory and the purchases, and subtract the cost of the ending inventory. This should equal the cost of goods sold.
$800 + $5,400 + $5,000 + $4,400 - $900 = $10,600
Average-cost
Under the average-cost method, the cost of all units available for sale is averaged, and this average cost is used to determine the cost of goods sold and ending inventory.
Average cost = $16,800 / 1,700 units = $9.94/unit
Cost of goods sold = 1,500 units * $9.94/unit = $14,890
Ending inventory = 1,700 units - 1,500 units
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The Complete Question
Vista Company Inc. had a beginning inventory of 100 units of Product RST at a cost of $8 per unit. During the year, purchases were:
Feb. 20 600 units at $9
Aug. 12 400 units at $11
May 5 500 units at $10
Dec. 8 100 units at $12
Vista Company uses a periodic inventory system. Sales totaled 1,500 units.
Instructions
(a) Determine the cost of goods available for sale.
(b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round average unit cost to three decimal places.)
a) The cost of goods available for sale is $16,800.
b) The calculated values for the cost of goods sold under the FIFO and LIFO methods match the values obtained using the formulas, proving their accuracy.
(a) Beginning Inventory:
100 units at $8 per unit = $800
Purchases:
Feb. 20:
600 units at $9 per unit
= $5,400
May 5: 500 units at $10 per unit
= $5,000
Aug. 12: 400 units at $11 per unit
= $4,400
Dec. 8: 100 units at $12 per unit
= $1,200
Total Cost of Goods Available for Sale
= $800 + $5,400 + $5,000 + $4,400 + $1,200
= $16,800
Therefore, the cost of goods is $16,800.
(b) Given the sales of 1,500 units,
FIFO (First-In, First-Out):
The ending inventory consists of the most recent purchases.
Ending Inventory (FIFO):
Dec. 8: 100 units at $12 per unit
= $1,200
Cost of Goods Sold (FIFO):
Beginning Inventory: 100 units at $8 per unit = $800
Feb. 20: 600 units at $9 per unit
= $5,400
May 5: 500 units at $10 per unit
= $5,000
Aug. 12: 200 units at $11 per unit
= $2,200
Total Cost of Goods Sold (FIFO):
$800 + $5,400 + $5,000 + $2,200
= $13,400
LIFO (Last-In, First-Out):
Ending Inventory (LIFO):
Beginning Inventory: 100 units at $8 per unit = $800
Feb. 20: 400 units at $9 per unit = $3,600
Cost of Goods Sold (LIFO):
May 5: 500 units at $10 per unit
= $5,000
Aug. 12: 400 units at $11 per unit
= $4,400
Dec. 8: 100 units at $12 per unit
= $1,200
Total Cost of Goods Sold (LIFO):
= $5,000 + $4,400 + $1,200
= $10,600
Average-Cost:
Total Cost of Goods Available for Sale: $16,800
Total Units Available for Sale:
Beginning Inventory: 100 units
Feb. 20: 600 units
May 5: 500 units
Aug. 12: 400 units
Dec. 8: 100 units
Total Units Available for Sale:
= 100 + 600 + 500 + 400 + 100
= 1,700 units
Average Unit Cost:
= Total Cost of Goods Available for Sale / Total Units Available for Sale
= $16,800 / 1,700 units
= $9.882 per unit
Ending Inventory:
Remaining Units: 1,700 units - 1,500 units (sold)
= 200 units
Ending Inventory = Remaining Units x Average Unit Cost
= 200 units x $9.882
= $1,976.40
Cost of Goods Sold (Average-Cost):
Total Cost of Goods Available for Sale - Ending Inventory
$16,800 - $1,976.40 ≈ $14,823.60
Therefore, under the average-cost method:
Ending Inventory ≈ $1,976.40
Cost of Goods Sold ≈ $14,823.60
Compare the calculated values with the cost of goods sold formulas.
FIFO Cost of Goods Sold:
Beginning Inventory: 100 units at $8 per unit
= $800
Feb. 20: 600 units at $9 per unit
= $5,400
May 5: 500 units at $10 per unit
= $5,000
Aug. 12: 200 units at $11 per unit
= $2,200
Total Cost of Goods Sold (FIFO):
= $800 + $5,400 + $5,000 + $2,200
= $13,400
LIFO Cost of Goods Sold:
May 5: 500 units at $10 per unit
= $5,000
Aug. 12: 400 units at $11 per unit
= $4,400
Dec. 8: 100 units at $12 per unit
= $1,200
Total Cost of Goods Sold (LIFO):
= $5,000 + $4,400 + $1,200
= $10,600
The match the values obtained using the formulas, proving their accuracy.
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The question attached here seems to be incomplete, the complete question is:
Vista Company Inc. had a beginning inventory of 100 units of Product RST at a cost of $8 per unit. During the year, purchases were:
Feb. 20 600 units at $9
Aug. 12 400 units at $11
May 5 500 units at $10
Dec. 8 100 units at $12
Vista Company uses a periodic inventory system. Sales totaled 1,500 units.
Instructions
(a) Determine the cost of goods available for sale.
(b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round average unit cost to three decimal places.)
2x-2
6^2 simplified
6^1 simplified
6^0 simplified
Type each answer to each problem
Answer:
6^3 is 216
6^2 is 36
6^1 is 6
6^0 is 1
Step-by-step explanation:
Answer:
- 8n + 9
Step-by-step explanation:
A - B
= - 3n + 2 - (5n - 7) ← distribute by - 1
= - 3n + 2 - 5n + 7 ← collect like terms
= - 8n + 9 → or 9 - 8n
answers:
1: D 2: C
please mark me brainliest
Answer:
Yes.
Step-by-step explanation:
If you graph it you can see that they all the points match up to the perfect right triangle. You may have to rotate it to see it though. Point Z is the angle of the triangle that is the corner of the 90 degree triangle.