Ornamental Iron Works began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: (Click the icon to view the transactions.) Read the requirements. Data table Aug. 3 Aug. 8 Aug. 21 Aug. 30 Sale Purchase Sale Purchase Units 45 90 $ 85 Print 15 Unit Cost 54 58 Done Unit Sales Price $ 85 88 Requirements 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. 2. 3. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method. 4. Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method. Determine the company's cost of goods sold for August using FIFO, LIFO, and weighted-average inventory costing methods. 5. 6. If the business wanted to maximize gross profit, which method would it select? Compute gross profit for August using FIFO, LIFO, and weighted-average inventory costing methods. -
Ornamental Iron Works began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: (Click the icon to view the transactions.) Read the requirements. Data table Aug. 3 Aug. 8 Aug. 21 Aug. 30 Sale Purchase Sale Purchase Units 45 90 $ 85 Print 15 Unit Cost 54 58 Done Unit Sales Price $ 85 88 Requirements 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. 2. 3. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method. 4. Prepare a perpetual inventory record for the merchandise inventory using the weighted-average inventory costing method. Determine the company's cost of goods sold for August using FIFO, LIFO, and weighted-average inventory costing methods. 5. 6. If the business wanted to maximize gross profit, which method would it select? Compute gross profit for August using FIFO, LIFO, and weighted-average inventory costing methods. -
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...
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