3. Beginning inventory, purchases and sales data for widgets are as follows: Apr

Question

3.     Beginning inventory, purchases and sales data for widgets are as follows:

Apr 3

Inventory

15 units

@

$30

     11

Purchase

12 units

@

$27

     14

Sale

18 units

     21

Purchase

7 units

@

$25

     25

Sale

10 units

Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using FIFO.

Purchases

Cost of
Merchandise Sold

Inventory

Date

Qty

Unit Cost

Total Cost

Qty

Unit Cost

Total Cost

Qty

Unit Cost

Total Cost

Balances

4.     Complete the chart using the LIFO and FIFO costing methods, assuming a period of increasing costs:

Highest Amount

Lowest Amount

Cost of merchandise sold

Gross Profit

Net Income

Ending Merchandise Inventory

Apr 3

Inventory

15 units

@

$30

     11

Purchase

12 units

@

$27

     14

Sale

18 units

     21

Purchase

7 units

@

$25

     25

Sale

10 units

Explanation / Answer

Received Rate Amount Issued Rate Amount Balance Rate Amount 3-Apr 0 0 0 0 0 0 15 30 450 11-Apr 12 27 324 0 0 0 15 30 450 12 27 324 14-Apr 0 0 0 15 30 450 9 27 243 3 27 81 21-Apr 7 25 175 0 0 0 9 27 243 7 25 175 25-Apr 0 0 0 9 27 243 6 25 150 1 25 25

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