John Adams Companys record of transactions for the month of April was as follows. Instructions (a) Assuming
Question:
Instructions
(a) Assuming that perpetual inventory records are kept in units only, compute the inventory at April 30 using
(1) LIFO and
(2) Average-cost.
(b) Assuming that perpetual inventory records are kept in dollars, determine the inventory using
(1) FIFO and
(2) LIFO.
(c) Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
(d) In an inflationary period, which inventory methodFIFO, LIFO, average-costwill show the highest netincome?
Transcribed Image Text:
Purchases Sales April 1 (balance on hand) 600 $6.00 April 3 9 1,500 a 6.08 800 a 6.40 1,200 @ 6.50 700 6.60 500 6.79 500 @ $10.00 1,400 a 10.00 600 @ 11.00 1,200 11.00 90012.00 4 13 21 29 23 27 4,600 5,300
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a 1 LIFO 600 600 3600 100 608 608 4208 2 Average c...View the full answer
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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