owing inventory flow in March 2020. It follows a perpetual system of cost flow. Date Description Unit and Rate March 01 Beginning inventory 160 units @ $16 each 02 Purchase 380 units @ $17 each 08 Sales 200 units @ $56 each 12 Purchase
owing inventory flow in March 2020. It follows a perpetual system of cost flow. Date Description Unit and Rate March 01 Beginning inventory 160 units @ $16 each 02 Purchase 380 units @ $17 each 08 Sales 200 units @ $56 each 12 Purchase
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Inventories (Cost Flow under FIFO, LIFO, and AVCO):
Problem:
Atkinson Inc. had the following inventory flow in March 2020. It follows a perpetual system of cost flow.
| Date | Description | Unit and Rate |
| March 01 | Beginning inventory | 160 units @ $16 each |
| 02 | Purchase | 380 units @ $17 each |
| 08 | Sales | 200 units @ $56 each |
| 12 | Purchase | 100 units @ $19 each |
| 20 | Sales | 250 units @ $62 each |
| 22 | Sales | 50 units @ $70 each |
| 26 | Purchase | 400 units @ $18 each |
| 29 | Sales | 350 units @ $65 each |
Prepare inventory cost flow schedules by following FIFO, LIFO, and AVCO. Also, show a condensed Income Statement assuming Selling and Distribution cost to be $16,000 and
Administrative Expense as $12,000. Consider an Income Tax Rate of 30%.
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