The Patterson Company sells two products, Tog and Uni. Tog sells for $850 per unit, and Uni
Question:
The Patterson Company sells two products, Tog and Uni. Tog sells for $850 per unit, and Uni has a price of $1,300. Patterson uses the perpetual inventory system and uses the gross price method of accounting for purchase discounts. On December 1, 2018, Patterson had 70 units of Tog at a cost of $400 each and 20 units of Uni at a cost of $740 each. During the month of December 2018, Patterson had the following transactions:
Required:
A. Make the entries for these transactions using the FIFO cost flow assumption.B. Make the entries for these transactions using the LIFO cost flow assumption.C. What is the amount of gross margin and ending inventory under FIFO?D. What is the amount of gross margin and ending inventory under LIFO?
Step by Step Answer:
Introduction To AccountingAn Integrated Approach
ISBN: 9781119600107
8th Edition
Authors: Penne Ainsworth, Dan Deines