(CLO-21] ABC Company was formen January 1, 2022. The following information is available from ABC's inventory record for Product X January 1 Beginning inventory 1,000 units @ $18 January 5 Purchases January 8 Purchases 2,600 units @ $20 2,400 units @ $21 2,000 units January 10 Sales January 15 Purchases January 18 Sales 1,000 units @ $22 2,100 units January 25 Purchases 1,800 units @ $23 Required: Part a) Calculate the amount of cost of goods sold and the value of the ending inventory for the month of January by using First in- First Out (FIFO) method of inventory valuation. Part b) if we use average method of inventory valuation in the above situation of rising prices, what will be the impact on the closing inventory and the cost of goods sold? Note: You are not required to show any calculation for this part (b))

(CLO-21] ABC Company was formen January 1, 2022. The following information is available from ABC's inventory record for Product X January 1 Beginning inventory 1,000 units @ $18 January 5 Purchases January 8 Purchases 2,600 units @ $20 2,400 units @ $21 2,000 units January 10 Sales January 15 Purchases January 18 Sales 1,000 units @ $22 2,100 units January 25 Purchases 1,800 units @ $23 Required: Part a) Calculate the amount of cost of goods sold and the value of the ending inventory for the month of January by using First in- First Out (FIFO) method of inventory valuation. Part b) if we use average method of inventory valuation in the above situation of rising prices, what will be the impact on the closing inventory and the cost of goods sold? Note: You are not required to show any calculation for this part (b))

Name: [CLO-2] ABC Company was formen January 1, 2022. The following informa
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Description: [CLO-2] ABC Company was formen January 1, 2022. The following information is available from ABC's inventory record for Product XJanuary 1 Beginning inventory1,000 units @ $182,600 units @ $202,400 units @ $212,000 unitsJanuary 5 PurchasesJanuary 8 P

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

Problem 2MC: The following items were included in Venicio Corporations inventory account on December 31, 2019:...

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