The inventory records of Cushing, Inc. reflected the following information for the year ended December 31.2016: Required:

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The inventory records of Cushing, Inc. reflected the following information for the year ended December 31.2016:

The inventory records of Cushing, Inc. reflected the following information

Required:
a. Assume that Cushing, Inc. uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIR) and LIFO.
b. Assume that Cushing. Inc. uses a perpetual inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO.
c. Explain why the FIFO results for cost of goods sold and ending inventory are the same in your answers to parts a and b. but the LIFO results are different.
d. Explain why the results from the LIFO periodic calculations in part a cannot possibly represent the actual physical flow of inventory items.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  book-img-for-question

Accounting What the Numbers Mean

ISBN: 978-1259535314

11th edition

Authors: David Marshall, Wayne McManus, Daniel Viele

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