Question 1: Inventory Measurement StayCool, Inc. sells air


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Question 1: Inventory Measurement StayCool, Inc. sells air conditioners. On January 1, 2012, they had 5,000 air conditioner units in inventory. If StayCool reported inventory on a FIFO basis, its beginning inventory balance would include the following: Year units were purchased Number of units Cost per unit 2010 1,000 $500 2011 4,000 $600 If StayCool reported inventory on a LIFO basis, its beginning inventory balance would include the following: Year units were purchased Number of units Cost per unit 1998 2,000 $300 2002 3,000 $400 During 2012, StayCool purchased 5,000 air conditioner units. Related costs were as follows: Paid to supplier $3,500,000 Freight-in charges 100,000 Selling commissions 200,000 During 2012, StayCool sold 6,000 air conditioner units at a price of $1,200 each. StayCool uses a periodic inventory system. (((a))). Calculate Cost of Sales for 2012 if StayCool, Inc. uses periodic LIFO to value inventory. (((B))) Calculate the balance in ending inventory on December 31, 2012 if StayCool, Inc. uses periodic FIFO to value inventory.

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