Recelved Into store Price paid to suppler Date Unit price Issued to retail outiets units units 01-May 120 30 3,600 19-May 60 34 2,040 22-May B0 30-May 70 Total 180 5,640 150 Required: (a) Calculate the cost of goods issued to retail stores during May under FIFO, LIFO and Cumulative Weighted Average. (b) Calculate the cost of inventory held in the warehouse at the end of May under FIFO, LIFO and CumulativWeighted Average. (c) Using an example explain how we use consistency and prudence concept in valuing inventory. (d) Calculate gross profit using FIFO method.

Recelved Into store Price paid to suppler Date Unit price Issued to retail outiets units units 01-May 120 30 3,600 19-May 60 34 2,040 22-May B0 30-May 70 Total 180 5,640 150 Required: (a) Calculate the cost of goods issued to retail stores during May under FIFO, LIFO and Cumulative Weighted Average. (b) Calculate the cost of inventory held in the warehouse at the end of May under FIFO, LIFO and CumulativWeighted Average. (c) Using an example explain how we use consistency and prudence concept in valuing inventory. (d) Calculate gross profit using FIFO method.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4PEA: Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory...

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