QUESTION 6: P6-13A Kane Ltd. had a beginning inventory on January 1 of 250 units...
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Accounting
QUESTION 6: P6-13A Kane Ltd. had a beginning inventory on January 1 of 250 units of product SXL at a cost of $160 per unit. During the year, purchases were as follows:
| Units | Unit Cost | Total Cost | |
| Mar. 15 | 700 | $150 | $105,000 |
| July 20 | 500 | 145 | 72,500 |
| Sept.4 | 450 | 135 | 60,750 |
| Dec. 2 | 100 | 125 | 12,500 |
Kane uses a periodic inventory system. At the end of the year, a physical inventory count determined that there were 200 units on hand.
Instructions
(a) Determine the cost of goods available for sale.
(b) Determine the cost of the ending inventory and the cost of the goods sold using (1) FIFO and (2) average cost. (Use unrounded numbers in your calculation of the average unit cost but round to the nearest cent for presentation purposes in your answer.)
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