Markus Mrotek is the owner of Mrotek Co., a sole proprietorship. Mrotek is a wholesaler which buys ceiling fans from manufacturers and then resells them to retailers. Mrotek took an introductory accounting course in college and remembers that there are multiple methods for carrying inventory costs. He remembers FIFO, LIFO, and moving average. He has hired you as a consultant to help him determine which method is most beneficial for his business. Mrotek struggles with cash management and his goals are to increase cash inflows. The purchase and sales data for one month are listed below. Mrotek uses perpetual inventory. You must complete the inventory control sheets for the three inventory methods listed above. The worksheet tabs are labeled according to each method. At the bottom of each control sheet is an answer box for the total questions needed to make your final decision. If you fill in each of those answer boxes, the Cost of Goods Sold will transfer to the final comparison worksheet. On the Comparison worksheet, enter the sales revenue. Gross profit will automatically be calculated.
Markus Mrotek is the owner of Mrotek Co., a sole proprietorship. Mrotek is a wholesaler which buys ceiling fans from manufacturers and then resells them to retailers. Mrotek took an introductory accounting course in college and remembers that there are multiple methods for carrying inventory costs. He remembers FIFO, LIFO, and moving average. He has hired you as a consultant to help him determine which method is most beneficial for his business. Mrotek struggles with cash management and his goals are to increase
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
