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 years b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $38 per unit) . Sale, July 3 (sold for $38 per unit) f. Operating expenses (excluding income tax expense), $19,000 Cost of Ending Inventory Cost of Goods Sold FIFO Units 500 LIFO 500 700 500 520 Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods. Unit Cost $ 10 12

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 years b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $38 per unit) . Sale, July 3 (sold for $38 per unit) f. Operating expenses (excluding income tax expense), $19,000 Cost of Ending Inventory Cost of Goods Sold FIFO Units 500 LIFO 500 700 500 520 Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods. Unit Cost $ 10 12

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Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...

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