Chapter 5/6 Homework (i)
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Serve 4 Ext
1
Brief Exercise 5-1 (Algo) Allocating product cost between cost of goods sold and ending inventory: multiple purchases. LO 5-1
3.57
points
LoDo Designs sells smart phone cases that are custom designed by local artists. Its beginning inventory of cases was 150 units at
$35
per unit. During the year, the company made two batch purchases of these cases. The first was a 205 -unit purchase at
$38
per unit;
-Book the second was a 275 -unit purchase at
$41
per unit. During the period, it sold 515 cases.
Prim
Required:
Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that LoDo Designs uses
a. FIFO.
b. LIFO.
\table[[,HFO,LIFO],[Cost of goods sold,,],[Ending inventory,,]]
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