Question

Jefferson Company had the following sales and purchases during 2011, its first year of business:
January 5 Purchased 40 units at $100 each
February 15 Sold 15 units at $150 each
April 10 Sold 10 units at $150 each
June 30 Purchased 30 units at $105 each
August 15 Sold 25 units at $150 each
November 28 Purchased 30 units at $110 each

Requirements
1. Calculate the ending inventory, the cost of goods sold, and the gross profit for the December 31, 2011, financial statements under each of the following assumptions:
a. FIFO periodic
b. LIFO periodic
c. Weighted average cost periodic
2. How will the differences between the methods affect the income statement for the year and balance sheet at December 31, 2011?



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  • CreatedSeptember 01, 2014
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