Q1: Grayson Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Grayson Company uses the perpetual inventory system. Units 3/1 Purchases Unit Cost Beginning inventory Sales Selling Price/Unit $55 Units 100 3/3 Purchase 60 $60 3/4 Sales 60 $120 $65 3/10 Purchase 200 3/16 Sales 90 $130 Sales $130 $130 3/19 70 3/25 Sales 50 3/30 Purchase 40 $75 Instructions Using the FIFO assumption, calculate the amount charged to computations) (а) cost of goods sold for March. (Show (b) Using the FIFO assumption, calculate the value of ending inventory for March. Using the moving average cost method, calculate the amount assigned to the inventory on hand on March 31. (Show computations) (c) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31. (Show computations) (d) (e) Using the LIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations)
Q1: Grayson Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Grayson Company uses the perpetual inventory system. Units 3/1 Purchases Unit Cost Beginning inventory Sales Selling Price/Unit $55 Units 100 3/3 Purchase 60 $60 3/4 Sales 60 $120 $65 3/10 Purchase 200 3/16 Sales 90 $130 Sales $130 $130 3/19 70 3/25 Sales 50 3/30 Purchase 40 $75 Instructions Using the FIFO assumption, calculate the amount charged to computations) (а) cost of goods sold for March. (Show (b) Using the FIFO assumption, calculate the value of ending inventory for March. Using the moving average cost method, calculate the amount assigned to the inventory on hand on March 31. (Show computations) (c) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31. (Show computations) (d) (e) Using the LIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations)
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 62E
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