Erie Jewelers sells gold earrings. Its beginning inventory Model 407 gold earrings consisted of 150 pairs of earrings at $50 per pair. Erie purchased two batches of Model 407 earrings during the year. The first batch purchased consisted of 125 pairs at $53 per pair; the second batch consisted of 195 pairs at $56 per pair. During the year, Erie sold 365 pairs of Model 407 earrings. Required Determine the amount of product cost Erie would allocate to cost of goods sold and ending inventory assuming that Erie uses (a) FIFO, (b) LIFO, and (c) weighted average.

Erie Jewelers sells gold earrings. Its beginning inventory Model 407 gold earrings consisted of 150 pairs of earrings at $50 per pair. Erie purchased two batches of Model 407 earrings during the year. The first batch purchased consisted of 125 pairs at $53 per pair; the second batch consisted of 195 pairs at $56 per pair. During the year, Erie sold 365 pairs of Model 407 earrings. Required Determine the amount of product cost Erie would allocate to cost of goods sold and ending inventory assuming that Erie uses (a) FIFO, (b) LIFO, and (c) weighted average.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 18E

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