Question

To prepare solutions to the requirements listed below, use the data provided in P2 but assume that the company uses the perpetual inventory system.
In P2, The inventory, purchases, and sales of Product SOL for March and April are listed below. The company closes its books at the end of each month. It uses the periodic inventory system.


REQUIRED
1. Determine the cost of ending inventory and cost of goods sold for March and April using the average-cost method. Round unit costs to cents and totals to dollars.
2. Determine the cost of ending inventory and cost of goods sold for March and April using the FIFO method.
3. Determine the cost of ending inventory and cost of goods sold for March and April using the LIFO method.
4. Assume that this company grows for many years in a long period of rising prices. How realistic do you think the balance sheet value for inventory would be, and what effect would it have on the inventory turnoverratio?


$1.99
Sales0
Views109
Comments0
  • CreatedSeptember 10, 2014
  • Files Included
Post your question
5000