The purchases and issues of rubber gaskets (Materials Ledger #11

The purchases and issues of rubber gaskets (Materials Ledger #11216) as shown in the records of HD Corporation for the month of November follow:


The purchases and issues of rubber gaskets (Materials Ledger #11


Required:
1. Complete a materials ledger account similar to Figure 2-10 (the ‘‘On Order'' columns should be omitted) for each of the following inventory costing methods, using a perpetual inventory system:
a. FIFO
b. LIFO
c. Moving average (carrying unit prices to five decimal places)
2. For each method, prepare a schedule that shows the total cost of materials transferred to Work in Process and the cost of the ending inventory.
3. If prices continue to increase, would you favor adopting the FIFO or the LIFO method? Explain.
4. When prices continue to rise, what is the effect of FIFO versus LIFO on the inventory balance for materials reported in the balance sheet?Discuss.

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 =...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...