Dubai Organisation was organised on January 1 st , 2020. During this year the company made several
Question:
Dubai Organisation was organised on January 1st, 2020. During this year the company made several actions in order to evaluate and control inventory movements. Using information given below find the following:
Required:
Calculate the total amount (in dollar) for closing inventory on July 31st, 2020 is in both FIFO
and LIFO methods.
ii) Calculate the Ending Inventory, Cost of Goods Sold and Profit/Loss on July 31st, 2020 is in both FIFO and LIFO.
1- On January 2nd, 2020 the orgnisation beginning inventory 500 units at price of $1.50 per unit
2- On January 15th, 2020 the orgnisation purchased 700 units at price of $ 2.00 per unit.
3- On February 10th, 2020 the orgnisation Sold 500 units at price of $2.00 per unit.
5- On March 12th, 2020 the orgnisation purchaseed 400 units at price of $3.00 per unit.
6- On April 30th, 2020 the orgnisation sold 300 units at price of $3.00 per unit.
7- On May 15th, 2020 the orgnisation sold 500 units at price of $2.00 per unit.
8- On July 8th, 2020 the orgnisation purchased 500 units at price 2.00 per unit.
9 - On July 31st, 2020 the organisation Sold 400 units at price 4.00 per unit.
Answer:
FIFO
The total amount (in dollars) for closing inventory on July 31th, 2016 is:
………………………………………………………………………………………………………………………………………………………………………………………………………………
The cost of goods sold on July 31th, 2020 is:
………………………………………………………………………………………………………………………………………………………………………………………………………………
LIFO
The total amount (in dollars) for closing inventory on July 31th, 2020 is:
………………………………………………………………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………..................................................................................................................................
The cost of goods sold on July 31th, 2020 is:
………………………………………………………………………………………………………………………………………………………………………………………………………………
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas