Assume Orion Iron applies its inventory costing method perpetually at the time of each sale. At...

 

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Assume Orion Iron applies its inventory costing method perpetually at the time of each sale. At the end of the annual accounting period, December 31, the accounting records provided the following information: Transactions a. Inventory, Beginning For the year: b. Purchase, April 11 Units Unit Cost 3,000 $12 9,000 10 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) 8,000 13 13 3,000 6,000 f. Operating expenses (excluding income tax expense), $195,000 Requirement 1: (30 Marks) Calculate the cost of ending inventory and the cost of goods sold using the FIFO method. Assume Orion Iron applies its inventory costing method perpetually at the time of each sale. At the end of the annual accounting period, December 31, the accounting records provided the following information: Transactions a. Inventory, Beginning For the year: b. Purchase, April 11 Units Unit Cost 3,000 $12 9,000 10 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) 8,000 13 13 3,000 6,000 f. Operating expenses (excluding income tax expense), $195,000 Requirement 1: (30 Marks) Calculate the cost of ending inventory and the cost of goods sold using the FIFO method.

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