Description of this paper

Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method

Description

solution


Question

P6-33A Accounting for inventory using the perpetual inventory system?;FIFO, LIFO, and Weighted-Average, and comparing FIFO, LIFO, and;Weighted-Average;Decorative Steel began August with 55 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions;Units Unit Cost Unit Sale Price;Aug. 3 Sale 45 $83;Aug. 8 Purchase 75 $52;Aug. 21 Sale 70 $85;Aug. 30 Purchase 10 $55;Requirements;1. Prepare a perpetual inventory record for the merchandise inventory using;the FIFO inventory costing method.;2. Prepare a perpetual inventory record for the merchandise inventory using;the LIFO inventory costing method.;3. Prepare a perpetual inventory record for the merchandise inventory using;the weighted-average inventory costing method.;4. Determine the company's cost of goods sold for August using FIFO, LIFO;and weighted-average inventory costing methods.;5. Compute gross profit for August using FIFO, LIFO, and weighted-average;inventory costing methods.;6. If the business wanted to maximize gross profit, which method would it select?

 

Paper#24023 | Written in 18-Jul-2015

Price : $32
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