Question

Assume that a B R Tire Store completed the following perpetual inventory transactions for a line of tires.
Beginning Inventory............................................................................... 25 tires @ $ 67
Purchase.................................................................................................. 34 tires @ $ 63
Sale.......................................................................................................... 39 tires @ $ 160

Requirements
1. Compute cost of goods sold and gross profit under FIFO.
2. Compute cost of goods sold and gross prof t using LIFO.
3. Compute cost of goods sold and gross prof t using average cost. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.
4. Which method results in the largest gross profit and why?



$1.99
Sales0
Views102
Comments0
  • CreatedApril 29, 2014
  • Files Included
Post your question
5000