1.Compute the cost of goods sold, inventory, inventory available for sale, sales, and gross profit for the years 2005, 2006 and 2007 using weighted average method.

2.Compute the cost of goods sold, inventory, inventory available for sale, sales, and gross profit for the years 2005, 2006 and 2007 using FIFO method.

3.Compute the cost of goods sold, inventory, inventory available for sale, sales, and gross profit for the years 2005, 2006 and 2007 using LIFO method.

4.What will be the LIFO reserve for each year?

5.In which years LIFO Liquidation occurs?

6.In what situation LIFO cost of inventories will be higher than FIFO?

7.In what situation FIFO cost of inventories will be higher than LIFO?

8.In what situation FIFO cost of inventories will be higher than the Weighted Average Method?

9.In what situation FIFO cost of inventories will be Lower than the Weighted Average Method?

Following is the yearly information about the inventories of industrial Fans Sales Inc, The beginning inventories for the year 2004 are ‘0 units’

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2004 2005 2006 2007 Fans-units purchased 12,000 12,000 12,000 12,000 Purchase cost per fan $100 $105 $110 $115 Fans-units sold 10,000 10,000 10,000 16,000 Sales price per fan $200 $205 $210 $215 2004 2005 2006 2007 Fans-units purchased 12,000 12,000 12,000 12,000 Purchase cost per fan $100 $105 $110 $115 Fans-units sold 10,000 10,000 10,000 16,000 Sales price per fan $200 $205 $210 $215

Answer rating: 100% (QA)

1 Weighted average Method Beginning Inventory Purchases Cost of Goods sold Ending Inventory Year Ope... View the full answer