Athletic Universe began January with merchandise inventory of 65 crates of vitamins that cost a total of
Question:
Requirements
1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company€™s cost of goods sold, ending merchandise inventory, and gross profit.
2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company€™s cost of goods sold, ending merchandise inventory, and gross profit.
3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company€™s cost of goods sold, ending merchandise inventory, and gross profit.
4. If the business wanted to pay the least amount of income taxes possible, which method would it choose?
Step by Step Answer:
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura