Accounting for inventory using the perpetual system—FIFO, LIFO, and average cost

Question # 00239677 Posted By: solutionshere Updated on: 04/05/2016 01:37 AM Due on: 05/05/2016
Subject Business Topic General Business Tutorials:
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Accounting for inventory using the perpetual system—FIFO, LIFO, and average cost; comparing FIFO, LIFO, and average cost

Ornamental Iron Works began January with 45 units of iron inventory that cost $24 each. During January, the company completed the following inventory transactions:

Units

Unit Cost

Unit Sale Price

Jan 3

Sale

35

$51

8

Purchase

70

$32

21

Sale

65

$73

30

Purchase

25

$47

Requirements

1. Prepare a perpetual inventory record for the inventory using FIFO.

2. Prepare a perpetual inventory record for the inventory using LIFO.

3. Prepare a perpetual inventory record for the inventory using average cost.

4. Determine the company’s cost of goods sold for January using FIFO, LIFO, and average cost.

5. Compute gross profit for January using FIFO, LIFO, and average cost.

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Tutorials for this Question
  1. Tutorial # 00234893 Posted By: solutionshere Posted on: 04/05/2016 01:37 AM
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    2. Prepare a perpetual inventory record ...
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    555.xlsx (14.42 KB)

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