prepare a perpetual inventory record for the inventory using lifo 559737

Accounting for inventory using the perpetual system—FIFO, LIFO, and average cost, and comparing FIFO, LIFO, and average cost

Decorative Steel began August with 55 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions:

Units

Unit Cost

Unit Sale Price

Aug 3

Sale

45

$52

8

Purchase

75

$52

21

Sale

70

$85

30

Purchase

10

$55

Requirements

1. Prepare a perpetual inventory record for the inventory using FIFO.

2. Prepare a perpetual inventory record for the inventory using LIFO.

3. Prepare a perpetual inventory record for the inventory using average cost.

4. Determine the company’s cost of goods sold for August using FIFO, LIFO, and average cost.

5. Compute gross profit for August using FIFO, LIFO, and average cost.

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