FIFO, LIFO and Average Cost
Not what you're looking for?
On March 31st, the Maple Shop had no alarm clocks on hand. During the next four months, it first purchased 50 clocks for $14 each, and then 75 more for $12 each. During these four months, 100 alarm clocks were sold.
What will the July 31 alarm clock inventory amount and the four months' cost of goods be if the Maple Shop uses the periodic inventory method and...
(a) average cost
(b) FIFO
(c) LIFO
Purchase this Solution
Solution Summary
The solution explains the inventory calculations using FIFO, LIFO and Average Cost methods. This is all completed in about 186 words.
Solution Preview
(a) Average cost
Under average cost method, we find the average cost of units which have been purchased. In this question, 50 clocks were purchased for $14, total amount is 700. 75 were purchased for $12, total amount is 900. The total number of clocks purchased is 125 ...
Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Operations Management
This quiz tests a student's knowledge about Operations Management
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.