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Jenkins Company Sells Home Weather Exercise Bikes

Question 68

Essay

Jenkins Company sells home weather exercise bikes. Its beginning inventory was 50 units at $200 per unit. During the year, Jenkins made two purchases of the bikes: first, a 150-unit purchase at $220 per unit, and then 100 units at $250 per unit. The ending inventory for the year was 125 units.
Required:
Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Jenkins uses
a) FIFO
b) LIFO
c) Weighted average Jenkins Company sells home weather exercise bikes. Its beginning inventory was 50 units at $200 per unit. During the year, Jenkins made two purchases of the bikes: first, a 150-unit purchase at $220 per unit, and then 100 units at $250 per unit. The ending inventory for the year was 125 units. Required: Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Jenkins uses a) FIFO b) LIFO c) Weighted average

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