Question: Use the data provided in P 7, but assume that the company uses the perpetual inventory system. Required 1. Determine the cost of ending inventory
Use the data provided in P 7, but assume that the company uses the perpetual inventory system.
Required
1. Determine the cost of ending inventory and cost of goods sold for March and April using the average-cost method. Round unit costs to cents and totals to dollars.
2. Determine the cost of ending inventory and cost of goods sold for March and April using the FIFO method.
3. Determine the cost of ending inventory and cost of goods sold for March and April using the LIFO method.
4. Assume that this company grows for many years in a long period of rising prices. How realistic do you think the balance sheet value for inventory would be and what effect would it have on the inventory turnover ratio?
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1 Perpetual inventory systemaveragecost method Date Units Cost Amount Mar 1 Beginning inventory 60 9800 5880 10 Purchase 100 10400 10400 10 Balance 16... View full answer
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