DO IT! 6.2 (LO 2) The accounting records of Americo Electronics show the following data. Compute cost...

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Accounting

DO IT! 6.2 (LO 2) The accounting records of AmericoElectronics show the following data.
Compute cost of goods sold under different cost flowmethods.
Beginning inventory
??
3,000 units at $5
Purchases
8,000 units at $7
Sales
9,400 units at $10
Determine cost of goods sold during the period under aperiodic inventory system using (a) the FIFO method, (b) the LIFOmethod, and (c) the average-cost method. (Round unit cost tonearest tenth of a cent.)

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Solution aIf the firm sold 9400 units the cost of goods sold as per FIFO method As per the First In First Out FIFO Method of Inventory Accounting the units produced earliest ie those that are a part of the beginning inventory are assumed to be sold first Thus 3000 units that are available from the earliest date ie those that are a part of the beginning Inventory are to be included in the cost of goods sold first The balance See Answer

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Beginning inventory	??	3,000 units at $5
Purchases		8,000 units at $7
Sales		9,400 units at $10