Question

Washington Company had the following sales and purchases during 2009, its first year of business:
January 8 Purchased 125 units at $100 each
February 20 Sold 75 units at $150 each
April 13 Sold 35 units at $150 each
June 28 Purchased 235 units at $105 each
August 2 Sold 175 units at $150 each
November 24 Purchased 140 units at $110 each

Requirements
1. Calculate the ending inventory, the cost of goods sold, and the gross profit for the December 31, 2009, 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, 2009?



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  • CreatedSeptember 01, 2014
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