During the year 235 bicycles were sold at a price of 1500


Question - Johnstone Co. uses the periodic inventory system. The following information about their inventory of Model ZZ Mountain Bicycles is available:

Date Transaction Number of Units Cost Per Unit Beginning Inventory 50 $800 Purchase 80 $820 Purchase 75 $840 Purchase 90 $850

During the year, 235 bicycles were sold at a price of $1,500 each. Other operating costs equaled $80,000 and their tax rate is 30%. Round final answers to the nearest dollar.

What was ending inventory and cost of goods sold on 12/31 under the LIFO cost flow assumption?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: During the year 235 bicycles were sold at a price of 1500
Reference No:- TGS02912630

Now Priced at $25 (50% Discount)

Recommended (98%)

Rated (4.3/5)