Following Information is taken form the Books of Ahmed’s Store who uses perpetual inventory system. Date Purchased in units Rate $ 01-01-20 800 9.00 02-01-20 500 9.50 04-01-20 1500 10.20 08-01-20 800 9.60 13-01-20 1200 9.75 15-01-20 800 9.90 19-01-20 500 10.19 24-01-20 700 9.81 25-01-20 1000 9.24 28-01-20 1500 9.75 Date Sales in Units Rate $ 03-01-20 1000 15.00 07-01-20 1300 15.00 11-01-20 900 16.50 14-01-20 1200 16.50 17-01-20 900 18.00 21-01-20 500 18.00 26-01-20 500 18.75 30-01-20 2000 17.25 Requirements: With the Assumption of perpetual inventory system to record above transactions with the use of following methods. LIFO 2. Average Cost
Following Information is taken form the Books of Ahmed’s Store who uses perpetual inventory system. Date Purchased in units Rate $ 01-01-20 800 9.00 02-01-20 500 9.50 04-01-20 1500 10.20 08-01-20 800 9.60 13-01-20 1200 9.75 15-01-20 800 9.90 19-01-20 500 10.19 24-01-20 700 9.81 25-01-20 1000 9.24 28-01-20 1500 9.75 Date Sales in Units Rate $ 03-01-20 1000 15.00 07-01-20 1300 15.00 11-01-20 900 16.50 14-01-20 1200 16.50 17-01-20 900 18.00 21-01-20 500 18.00 26-01-20 500 18.75 30-01-20 2000 17.25 Requirements: With the Assumption of perpetual inventory system to record above transactions with the use of following methods. LIFO 2. Average Cost
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 7MCQ
Related questions
Question
Following Information is taken form the Books of Ahmed’s Store who uses perpetual inventory system.
|
Date |
Purchased in units |
Rate $ |
|
01-01-20 |
800 |
9.00 |
|
02-01-20 |
500 |
9.50 |
|
04-01-20 |
1500 |
10.20 |
|
08-01-20 |
800 |
9.60 |
|
13-01-20 |
1200 |
9.75 |
|
15-01-20 |
800 |
9.90 |
|
19-01-20 |
500 |
10.19 |
|
24-01-20 |
700 |
9.81 |
|
25-01-20 |
1000 |
9.24 |
|
28-01-20 |
1500 |
9.75 |
|
Date |
Sales in Units |
Rate $ |
|
03-01-20 |
1000 |
15.00 |
|
07-01-20 |
1300 |
15.00 |
|
11-01-20 |
900 |
16.50 |
|
14-01-20 |
1200 |
16.50 |
|
17-01-20 |
900 |
18.00 |
|
21-01-20 |
500 |
18.00 |
|
26-01-20 |
500 |
18.75 |
|
30-01-20 |
2000 |
17.25 |
Requirements:
With the Assumption of perpetual inventory system to record above transactions with the use of following methods.
- LIFO
2. Average Cost
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning