Muvum corp. stocks more than 600 specialty inventory items for resale to their retail customers.Muvum uses a periodic inventory system data on purchases and sales for one of them, item 1262, are in the spreadsheet these transactions are for the first half of 2024.

A. Use the data to calculate cost of good sold ending inventory and gross profit for this item using FIFO LIFO and weighted average cost flow assumptions.

B. Based on the transaction history for this year, would LIFO be a reasonable choice for MUVUM's financial statement? Explain your reasoning.

 

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1 Item 1262 2 3 Date 4 5 6 7 8 9 Event 1-Jan Beginning 6-Jan Purchase 10-Jan Sale 15-Jan Sale 22-Jan Purchase 5-Feb Sale 10 10-Feb Sale 11 21-Feb Purchase 12 15-Mar Sale 13 21-Mar Sale 14 10-Apr Purchase 15 25-Apr Sale 8-May Sale 7-Jun Purchase 18-Jun Sale 16 17 18 19 Quantity Cost 250 1,000 490 600 1,475 823 600 1,150 760 177 1,680 904 675 2,000 1,500 90.30 93.33 97.66 95.54 94.23 89.10 Selling price 132.22 136.53 137.47 135.30 123.67 125.76 124.33 123.43 118.36 Units FIFO Cost/Unit Total Units LIFO Cost/Unit Total 1 Item 1262 2 3 Date 4 5 6 7 8 9 Event 1-Jan Beginning 6-Jan Purchase 10-Jan Sale 15-Jan Sale 22-Jan Purchase 5-Feb Sale 10 10-Feb Sale 11 21-Feb Purchase 12 15-Mar Sale 13 21-Mar Sale 14 10-Apr Purchase 15 25-Apr Sale 8-May Sale 7-Jun Purchase 18-Jun Sale 16 17 18 19 Quantity Cost 250 1,000 490 600 1,475 823 600 1,150 760 177 1,680 904 675 2,000 1,500 90.30 93.33 97.66 95.54 94.23 89.10 Selling price 132.22 136.53 137.47 135.30 123.67 125.76 124.33 123.43 118.36 Units FIFO Cost/Unit Total Units LIFO Cost/Unit Total

Answer rating: 100% (QA)

ANSWER A Use the data to calculate cost of goods sold ending inventory and gross profit for this ite... View the full answer