1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. 2....
Question:
1. | Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. |
2. | Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method. |
3. | Prepare a perpetual inventory record for the merchandise inventory using theweighted-average inventory costing method. |
4. | Determine the company's cost of goods sold for August using FIFO, LIFO, and weighted-average inventory costing methods. |
5. | Compute gross profit for August using FIFO, LIFO, and weighted-average inventory costing methods. |
6. | If the business wanted to maximize gross profit, which method would itselect? |
Iron HillIron Hill began August with 65 units of iron inventory that cost $ 30 each. During August, the company completed the following inventory transactions:
Units | Unit Cost | Unit Sales Price | ||
Aug. 3 | Sale | 50 | $81 | |
8 | Purchase | 85 | $50 | |
21 | Sale | 80 | 75 | |
30 | Purchase | 20 | 45 |
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura