Question

Dugan Sales had the following transactions for jackets in 2013, its first year of operations:


During the year, Dugan Sales sold 830 jackets for $40 each.

Required
a. Compute the amount of ending inventory Dugan would report on the balance sheet, assuming the following cost flow assumptions:
(1) FIFO,
(2) LIFO,
(3) Weighted average.
b. Record the above transactions in general journal form and post to T-accounts using
(1) FIFO,
(2) LIFO,
(3) Weighted average.
Use a separate set of journal entries and T-accounts for each method. Assume all transactions are cash transactions.
c. Compute the difference in gross margin between the FIFO and LIFO cost flowassumptions.


$1.99
Sales9
Views388
Comments0
  • CreatedOctober 26, 2013
  • Files Included
Post your question
5000