50.1K

Verified Solution

Link Copied!

Marigold Ltd. uses the perpetual inventory system and reports the following inventory transactions for the month of June Unit Date Explanation Units Cost Total Cost June 1 Beginning inventory 1,550 $5 $7,750.00 13,920 2,320 12 Purchases (2,340) 15 Sale 33,810 4,830 16 Purchases 10,880 1,360 23 Purchases (6,260) 27 Sales Determine the cost of goods sold and the cost of the ending inventory using (1) FIFO and (2) Average cost. (Round average final answers to 2 decimal places, e-s. 1.25. Do not round intermediate calculations.) FIFO Average Cost of goods sold$ Cost of ending inventory$ eTextbook and Media Attempts: 0 of 3 used Save for Later Check Answer Part 2 Which cost formula results in the higher cost of goods sold? Why? :cost of goods sold because the cost of inventory is cost formula results in a average FIFO Part 3 Which cost formula results in the higher net income? Why? cost of goods sold when prices art rising :profit because it produces the cost method formula in a The falling eTextbook and Media Attempts: 0 of 3 usedSave for Later Check Answer Part 4 Which cost formula results in the higher ending inventory? Why? ending inventory because the cost of inventory is :cost formula results in a The Part 5 Which cost formula results in the higher cash flow? Why? cost formula result in the same pre-tax cash flow. The cost methods the pre-tax cash flows of a company Average FIFO Both eTextbook and Media

Answer & Explanation Solved by verified expert

See Answer