Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, accounting records provided the following information for product 1: Units 2,000 Unit Cost $5 Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. 6,000 4,000 3,000 4 2
Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, accounting records provided the following information for product 1: Units 2,000 Unit Cost $5 Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. 6,000 4,000 3,000 4 2
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
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Alpesh bhaliya
![Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the
accounting records provided the following information for product 1:
Ending inventory
$
Cost of goods sold $
Inventory, December 31, prior year
For the current year:
Purchase, March 21
Purchase, August 1
Inventory, December 31, current year
Required:
Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.
FIFO
6,000
42,000
Units
2,000
LIFO
6,000
4,000
3,000
Unit Cost
$5
Average Cost
4
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c71dba6-c196-4a90-8101-a07a7bb512f3%2Fc406184d-e8dd-429a-b28d-7e012810e4b1%2Fklvjjgs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the
accounting records provided the following information for product 1:
Ending inventory
$
Cost of goods sold $
Inventory, December 31, prior year
For the current year:
Purchase, March 21
Purchase, August 1
Inventory, December 31, current year
Required:
Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.
FIFO
6,000
42,000
Units
2,000
LIFO
6,000
4,000
3,000
Unit Cost
$5
Average Cost
4
2
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