Question

Athletic Universe began January with merchandise inventory of 65 crates of vitamins that cost a total of $3,835. During the month, Athletic Universe purchased and sold merchandise on account as follows:
Requirements
1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company’s cost of goods sold, ending merchandise inventory, and gross profit.
2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company’s cost of goods sold, ending merchandise inventory, and gross profit.
3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company’s cost of goods sold, ending merchandise inventory, and gross profit.
4. If the business wanted to pay the least amount of income taxes possible, which method would it choose?


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  • CreatedJune 12, 2015
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