Luxury Iron Company began October with 53 units of iron inventory that cos$39 ea
ID: 2481173 • Letter: L
Question
Luxury Iron Company began October with 53 units of iron inventory that cos$39 each. During October the company completed the following inventory transactions: Requirement Prepare a perpetual inventory record using the FIFO method. (Enter the oldest inventory layers first.) Requirement 2.Prepare 3 perpetual inventory record using the LIFO method. (Enter the oldest inventory layers first.) Requirement 3.Prepare a perpetual inventory record using the average-cost method. (Round average cost per unit to the nearest cent are all other amounts to the nearest dollar.) Requirement 4.Determine the company's cost of goods sold for October using FIFO, LIFO, and average cost. The cost of goods sold amount for October using FIFO is. The cost of goods sold amount for October using UFO is $. The cost of goods sold amount for October using average cos: is S .Explanation / Answer
Requirement 1:
FIFO
Purchases
Cost of Goods Sold
Inventory on Hand
Date
Description
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
1-Oct
Beg Inventory
53
39.00
2,067
3-Oct
Sales
43
39.00
1,677
10
39.00
390
8-Oct
Purchases
83
41.00
3,403
83
41
3,403
21-Oct
Sales
10
39.00
390
-
63
41.00
2,583
20
41.00
820
30-Oct
Purchases
13
45.00
585
13
45
585
Ending
149
6,055
116
4,650
33
1,405
Requirement 2:
LIFO
Purchases
Cost of Goods Sold
Inventory on Hand
Date
Description
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
1-Oct
Beg Inventory
53
39.00
2,067
3-Oct
Sales
43
39.00
1,677
10
39.00
390
8-Oct
Purchases
83
41.00
3,403
83
41.00
3,403
21-Oct
Sales
73
41.00
2,993
10
41.00
410
30-Oct
Purchases
13
45.00
585
13
45.00
585
Ending
149
6,055
116
4,670
33
1,385
Requirement 3:
Average Cost
Purchases
Cost of Goods Sold
Inventory on Hand
Date
Description
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
1-Oct
Beg Inventory
53
39.00
2,067
3-Oct
Sales
43
39.00
1,677
10
39.00
390
8-Oct
Purchases
83
41.00
3,403
93
40.78
3,793
21-Oct
Sales
73
40.78
2,977
20
40.78
816
30-Oct
Purchases
13
45.00
585
33
42.45
1,401
Ending
149
6,055
116
4,654
33
42.445422
1,401
Requirement 4:
The COGS under FIFO
$ 4,650
The COGS under LIFO
$ 4,670
The COGS Average cost
$ 4,654
Requirement 1:
FIFO
Purchases
Cost of Goods Sold
Inventory on Hand
Date
Description
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
1-Oct
Beg Inventory
53
39.00
2,067
3-Oct
Sales
43
39.00
1,677
10
39.00
390
8-Oct
Purchases
83
41.00
3,403
83
41
3,403
21-Oct
Sales
10
39.00
390
-
63
41.00
2,583
20
41.00
820
30-Oct
Purchases
13
45.00
585
13
45
585
Ending
149
6,055
116
4,650
33
1,405
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.