How to do this. Please explain. Thank you. DateActivitiesUnits Acquired at CostUnits Sold at RetailApr. IBeginning inventory.20 units @ $3,000.00 per unitApr. 6Purchase30 units @ $3,500.00 per unitApr. 9Apr. 17Apr. 25Apr. 30Sales.35 units @ $12.000.00 per unit5 units @ $4,500.00 per unit10 units @ $4.800.00 per unitPurchasePurchaseSales25 units @ $14,000.00 per unitTotal65 units60 unitsRequired:We understand that LIFO system is not recommended by IFRS. However, to understand thedifference between LIFO and other systems, please:Create the (table of) inventory cost flow under the LIFO system and record the necessaryjournal entries.

As per the LIFO method, the goods received last are dispatched first. So, the ending inventory…

Date Activities Units Acquired at Cost Units Sold at Retail Apr. I Beginning inventory 20 units @ $3.000.00 per unit Apr. 6 Purchase. 30 units @ $3.500.00 per unit Apr. 9 Sales 35 units @ $12.000.00 per unit 5 units @ $4,500.00 per unit 10 units @ $4.800.00 per unit Apr. 17 Purchase Apr. 25 Purchase 25 units @ $14,000.00 per unit Apr. 30 Sales Total 65 units 60 units Required: We understand that LIFO system is not recommended by IFRS. However, to understand the difference between LIFO and other systems, please: • Create the (table of) inventory cost flow under the LIFO system and record the necessary journal entries.

Date Activities Units Acquired at Cost Units Sold at Retail Apr. I Beginning inventory 20 units @ $3.000.00 per unit Apr. 6 Purchase. 30 units @ $3.500.00 per unit Apr. 9 Sales 35 units @ $12.000.00 per unit 5 units @ $4,500.00 per unit 10 units @ $4.800.00 per unit Apr. 17 Purchase Apr. 25 Purchase 25 units @ $14,000.00 per unit Apr. 30 Sales Total 65 units 60 units Required: We understand that LIFO system is not recommended by IFRS. However, to understand the difference between LIFO and other systems, please: • Create the (table of) inventory cost flow under the LIFO system and record the necessary journal entries.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.23MCE

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