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    Tran Vo Van Anh (K17 HCM)
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    The document is an inventory costing problem for Austin Company that requires calculating cost of goods sold under three inventory costing methods: FIFO, LIFO, and weighted average. It provides beginning inventory quantities and costs, purchase transactions throughout the year including quantities and costs, and ending inventory quantity. The summary is to fill in the blanks to show the calculations of cost of goods sold under each method.

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    The document is an inventory costing problem for Austin Company that requires calculating cost of goods sold under three inventory costing methods: FIFO, LIFO, and weighted average. It provides beginning inventory quantities and costs, purchase transactions throughout the year including quantities and costs, and ending inventory quantity. The summary is to fill in the blanks to show the calculations of cost of goods sold under each method.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    11 views3 pages

    ESSAY

    Uploaded by

    Tran Vo Van Anh (K17 HCM)
    The document is an inventory costing problem for Austin Company that requires calculating cost of goods sold under three inventory costing methods: FIFO, LIFO, and weighted average. It provides beginning inventory quantities and costs, purchase transactions throughout the year including quantities and costs, and ending inventory quantity. The summary is to fill in the blanks to show the calculations of cost of goods sold under each method.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 3

    ESSAY

    1/ FILL IN THE BLANKS


    AUSTIN COMPANY

    Units in beginning inventory 33,000


    Cost of each unit $ 17

    Purchases: Units Cost


    Mar. 7 38,000 $ 19
    May 25 34,000 22
    Aug. 1 26,000 26
    Nov. 10 22,000 30

    Ending inventory, Dec. 31 40,000

    ??? ➔ FILL IN THE BLANKS


    (1) Cost of goods sold: FIFO ……………
    (2) Cost of goods sold: LIFO ……………
    (3) Cost of goods sold: Weighted
    average ……………..

    AUSTIN COMPANY
    Inventory

    Number and total cost of units available for sale:


    Unit Total
    Units Cost Cost
    Beginning inventory: 33,000 $17 ……………
    Purchased Mar. 7: 38,000 $19 ……………
    Purchased May 25: 34,000 $22 ……………
    Purchased Aug. 1: 26,000 $26 ……………
    Purchased Nov. 10: 22,000 $30 ……………
    Units for sale: …………. ……………..
    (a) FIFO periodic:
    Unit Total
    Units Cost Cost
    Total cost of units for
    sale …………… ……………
    …………… …………… ……………
    Less ending inventory
    …………… …………… ……………
    ……………
    Cost of units sold ……………

    (b) LIFO periodic:


    Unit Total
    Units Cost Cost
    Total cost of units for ……………
    sale ……………
    …………… …………… ……………
    Less ending inventory
    …………… …………… …………… ……………
    ……………
    Cost of units sold

    (c) Weighted-average cost periodic:


    Unit Total
    Units Cost Cost
    Total cost of units for …………… ……………
    sale
    …………… ……………
    Less ending inventory: ……………
    ……………
    Cost of units sold

    2/ Essay
    What does Generally accepted accounting principles (GAAP) mean?
    ……………………………………………………………………………………………………

    What is GAAP used for?

    …………………………………………………………………………………………………..
    Why is GAAP important?

    ……………………………………………………………………………………………………

    What is an example of GAAP?

    ……………………………………………………………………………………………………

    Are all companies required to follow GAAP?

    …………………………………………………………………………………………………..

    Limitations of GAAP

    ………………………………………………………………………………………………......

    Diverse Types of Companies

    ……………………………………………………………………………………………………

    Timeframe

    ……………………………………………………………………………………………………

    Global vs. Domestic

    …………………………………………………………………………………………………

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