jahubb
Jan 23, 2008, 02:06 PM
Can someone tell me if this is correct?
September 1 On hand, 300 units @ 1.50 each
September 6 purchased 1000 units @ 1.65
September 18 purchased 800 units @ 1.75 each
Total cost of goods available for sale = $3500
September 30 on hand, 425 units
Question 1.
If the company uses the weighted average cost method, would the amount assigned to the September 30 inventory be:
A. 656.25 B. 694.17 C. 708.33 D. 718.75 My answer was b, but I was incorrect can someone show me why.
Question 2.
If the company uses the LIFO inventory method, the ending inventory at September 30 would be:
A. 637.50 B. 656.25 C. 722.50 D. 743.75
Is c. 722.50 the correct answer, Thank You in advance
September 1 On hand, 300 units @ 1.50 each
September 6 purchased 1000 units @ 1.65
September 18 purchased 800 units @ 1.75 each
Total cost of goods available for sale = $3500
September 30 on hand, 425 units
Question 1.
If the company uses the weighted average cost method, would the amount assigned to the September 30 inventory be:
A. 656.25 B. 694.17 C. 708.33 D. 718.75 My answer was b, but I was incorrect can someone show me why.
Question 2.
If the company uses the LIFO inventory method, the ending inventory at September 30 would be:
A. 637.50 B. 656.25 C. 722.50 D. 743.75
Is c. 722.50 the correct answer, Thank You in advance