all the requirements counting for inventory using the perpetual inventory system

Question

all the requirements

counting for inventory using the perpetual inventory system FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted-average Learning Object Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: 5. FIFO GP $5,235 Units 45 90 85 15 Unit Cost Unit Sales Price Aug. 3 Sale $ 85 8 Purchase 21 Sale 30 Purchase $ 54 58 Requirements FIFO inventory costing method. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method. 2.

Explanation / Answer

1. FIFO method- COGS, ending inventory and profit:

Ending inventory total= 1410

2. LIFO method- COGS, Profit and ending inventory:

Ending inventory= 1315

3. Weighted average method:

6. FIFO profit high under three methods, hence suggested.

FIFO Method Perpetual Inventory method Purchases Sales- Aug 3 Sales- Aug 21 Closing Lot Units Per unit Total Units Per unit Total Units Per unit Total Units Per unit Total Opening 50 35 1750 45 35 1575 5 35 175 0 35 0 Aug.8 90 54 4860 80 54 4320 10 54 540 Aug.30 15 58 870 15 58 870 7480 1575 4495 1410 Cost of goods sold: Sales- Aug 3 1575 Sales- Aug 21 4495 6070 Profit: Sale value Sales- Aug 3 3825 Sales- Aug 21 7480 11305 Less: COGS 6070 Profit 5235

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