Question: Ammons company uses a perpetual inventory system it entered into

Ammons Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for January.
1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
3. Compute the cost assigned to ending inventory using
(a) FIFO,
(b) LIFO,
(c) Weighted average,
(d) Specific identification.
(Round per unit costs to three decimals, but inventory balances to the dollar.)
For specific identification, the January 9 sale consisted of 4 units from beginning inventory and 17 units from the January 5 purchase; the January 29 sale consisted of 2 units from the January 18 purchase and 6 units from the January 25 purchase.
4. Compute gross profit earned by the company for each of the four costing methods in part 3.

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  • CreatedMarch 18, 2015
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