Only typed solution Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing methodperpetually at the time of each sale, as if it uses perpetual inventory system. Assume its accounting records provided the followinginformation at the end of the annual accounting period, December 31.Transactionsa. Inventory, BeginningFor the year:b. Purchase, April 11c. Purchase, June 1d. Sale, May 1 (sold for $40 per unit)e. Sale, July 3 (sold for $40 per unit)f. Operating expenses (excluding income tax expense), $18,600Required:Units400Unit Cost$ 12850107501440067011Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.Cost of Ending InventoryCost of Goods Sold$FIFO11,500$LIFO13,380

Inventory Valuation is a method of calculating the value of stock at the end of an accounting…

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Accounting

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Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...

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Question

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Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method
perpetually at the time of each sale, as if it uses perpetual inventory system. Assume its accounting records provided the following
information at the end of the annual accounting period, December 31.
Transactions
a. Inventory, Beginning
For the year:
b. Purchase, April 11
c. Purchase, June 1
d. Sale, May 1 (sold for $40 per unit)
e. Sale, July 3 (sold for $40 per unit)
f. Operating expenses (excluding income tax expense), $18,600
Required:
Units
400
Unit Cost
$ 12
850
10
750
14
400
670
11
Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.
Cost of Ending Inventory
Cost of Goods Sold
$
FIFO
11,500
$
LIFO
13,380

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