[The following information applies to the questions displayed below.]A company reports the following beginning inventory and two purchases for the month of January. On January 26, thecompany sells 300 units. Ending inventory at January 31 totals 130 units.Beginning inventory on January 1Purchase on January 9Purchase on January 25Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based onthe LIFO method.DateAssume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based onthe LIFO method.January 1January 9Total January 9January 25Total January 25January 26Total January 26Goods purchasedUnits27060100# of unitsUnit Cost$ 2.502.702.84Cost per # of unitsunitsoldPerpetual LIFO:Cost of Goods SoldCost perunitCost of GoodsSold# of unitsInventory BalanceCost perunitInventoryBalance

The inventory can be valued using various methods as FIFO, LIFO and average method. Using LIFO, the…

[The following information applies to the questions displayed below.] A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 300 units. Ending inventory at January 31 totals 130 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 270 60 100 Unit Cost $2.50 2.70 2.84 ssume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based e LIFO method. ssume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based e LIFO method.

[The following information applies to the questions displayed below.] A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 300 units. Ending inventory at January 31 totals 130 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 270 60 100 Unit Cost $2.50 2.70 2.84 ssume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based e LIFO method. ssume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based e LIFO method.

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 4PB: The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are...

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Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows: Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. 2. Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1). 3. Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1). 4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.
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