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Sellco Cost flow assumptions: FIFO, LIFO, and weighted average

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Cost flow assumptions- FIFO, LIFO, and weighted average using a periodic system:

The following data are available for Sellco for the fiscal year ended on January 31, 2009:

Sales.......................................... 1,600 units
Beginning Inventory ..........................500 units @ $4
Purchases, in chronological order............600 units @ $5
800 units @ $6
400 units @ $8

a) Calculate cost of goods sold and ending inventory under the following cost-flow assumptions (using a periodic inventory system)
1) FIFO
2) LIFO
3) Weighted average. Round the unit cost answer to two decimal places and ending inventory to nearest $10.

b) Assume that net income using the weighted - average cost - flow assumption is $58,000. Calculate net income under FIFO and LIFO

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The expert examines Sellco Cost flow assumptions FIFO, LIFO and weighted average costs.

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