You are the owner of a very small business that sells gourmet coffee. You sell only one...

70.2K

Verified Solution

Question

Accounting

You are the owner of a very small business that sells gourmetcoffee.
You sell only one product, a 12-ounce bag of whole-bean Frenchroast coffee. You sell each bag of coffee for $14 each, but due tothe fluctuation in commodity prices, the price you pay yoursupplier to stock the product is constantly changing. In your firstmonth of operations, you bought bags of coffee from your supplierin the following order: (a) 1 units at $2 each on January 1, (b) 7units at $4 each on January 8, and (c) 2 units at $8 each onJanuary 29.
Assuming you sold 6 units during the month, calculate the costof goods available for sale, ending inventory, and cost of goodssold under the (a) FIFO, (b) LIFO, and (c) weighted average costflow assumptions. Assume a periodic inventory system is used.(Round "Cost per Unit" to 2 decimal places.)

Answer & Explanation Solved by verified expert

3.6 Ratings (552 Votes)

Solution a Computation of COGS and ending inventory Periodic FIFO Particulars Cost of goods available for sale Cost of goods sold Ending Inventory Nos of units Unit Cost Cost of goods available for sale Nos of units sold Unit Cost Cost of goods sold Nos of See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member