Assuming there are 300 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method. Bethke uses a periodic inventory system.
FIFO
LIFO
Cost of the ending inventory$
$
Question 2In its first month of operations, Bethke Company made three purchases of merchandise in the following sequence: (1) 120 units at $9, (2) 510 units at $10, and (3) 150 units at $11.
Calculate the average unit cost. (Round answer to 2 decimal places, e.g. 15.25.)
Average unit cost$
Compute the cost of the ending inventory under the average-cost method, assuming there are 390 units on hand. (Round answer to 0 decimal places, e.g. 1,250.)
The cost of the ending inventory$
Question 3Pettit Company reports net income of $61,700 in 2017. However, ending inventory was understated $8,700.
What is the correct net income for 2017?
Correct net income for 2017$
Question 4Xiong Co. uses a periodic inventory system. Its records show the following for the month of May, in which 94 units were sold.
Units
Unit Cost
Total Cost
May 1Inventory44
$11
$484
15Purchases36
14
504
24Purchases51
15
765
Totals131
$1,753
Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods.
FIFO
LIFO
Ending inventory at May 31$
$
Cost of goods sold$
$
Question 5Lisa Company had 100 units in beginning inventory at a total cost of $12,000. The company purchased 200 units at a total cost of $30,000. At the end of the year, Lisa had 75 units in ending inventory.
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.)
FIFO
LIFO
Average-cost
The cost of the ending inventory$
$
$
The cost of goods sold$
$
$
Which cost flow method would result in the highest net income?
Which cost flow method would result in inventories approximating current cost in the balance sheet?
Which cost flow method would result in Lisa paying the least taxes in the first year?
