Problem 28

Merchandiselt 15 Problems Group A Learning Objectives 2.3 For all r em WW The p a l inventory system is used unless stated otherwise P-2A Accounting for inventory using the perpetual inventory system FIFO, LIFO, and weighted average Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost total of $4,29). During the month, Fit Gym purchased and sold merchandise on account as follows: 2 Ending Merch inw..5990 Jan. 5 Purchase 13 Sale 18 Purchase 26 Sale 156 crates @ $ 64 each 180 crates @ $ 100 each 114 crates @ $ 75 each 150 crates @ $ 116 each Requirements 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory and gross profit. 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 3. Prepare a perpetual inventory record, using the weighted average inventory cost- ing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.) 4. e business wanted to pay the least amount of income taxes possible, which method would it choose? Learning Objectives 2, 3 PG-29A ACCOUW Tonventory using the perpetual inventory system FIFO, LIPO, and weighted average, and comparing FIFO, LIFO, and weighted average Soi M i n August with 50 units of iron inventory that cost $35 each. During Amst, the company completed the following inventory transactions: 5. FIFO GP $5,235 Units Unit Cost Unit Sales Price $ 85 Aug. 3 Sale 8 Purchase 21 Sale $ 54 Merchandise Inventory 363 Problems Group A Learning Objectives 2, 3 For all problems, assume the perpetual inventory system is used unless stated otherwise P6-28A Accounting for inventory using the perpetual inventory system- FIFO, LIFO, and weighted average Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. During the month, Fit Gym purchased and sold merchandise on account as follows: 2. Ending Merch. Inv., 1990 156 crates @ $ 64 each 180 crates @ $ 100 each Jan.5 Purchase 13 Sale 18 Purchase 26 Sale 114 crates @s 75 each 150 crates @ $ 116 each Requirements 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory and gross profit. 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory and gross profit 3. Prepare a perpetual inventory record, using the weighted average inventory cost ing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.) 4. ! the business wanted to pay the least amount of income taxes possible, which method tould it choose? Learning Objectives 2, 3 PG-29A Accounting for inventory using the perpetual inventory system- FIFO, LIFO, and weighted average, and comparing FIFO, LIFO, and weighted average Steel Mill began August with 50 units of iron inventory that cost $35 each. During durust, the company completed the following inventory transactions: 5. FIFO GP $5,235 Units Aug. 3 Sale 8 Purchase 21 Sale Unit Cost Unit Sales Price $85 $ 54 85