Assuming that the perpetual inventory method is used and

Reference no: EM13597825

Inventory information for Part 311 of Seminole Corp. discloses the following information for the month of June.

June 1 Balance 300 Units @ $10 June 10 Sold 200 Units @ $24
11 Purchased 800 Units @ $11 15 Sold 500 Units @$25
20 Purchased 500 Units @ $13 27 Sold 250 Units @ $25

Instructions:
A) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.
B) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?
C) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at
D) Why is it stated that LIFO usually produces a lower gross profit than FIFO?

Reference no: EM13597825

Questions Cloud

Fogelberg company purchased equipment for 12000 sales tax : fogelberg company purchased equipment for 12000. sales tax on the purchase was 600. other costs incurred were freight

How does the fifo method differ from the average costing : how does the fifo method differ from the average costing method of process costing system? provide an example of fifo

Under the terms of the research and development agreement : direct drugs inc. is planning to acquire solvgen inc. solvgen or the company a publicly owned company during the fourth

Compute the flexible-budget variances for the following two : four flags is a retail department store. on january 1 2011 four flags accountants used the following data to develop

Assuming that the perpetual inventory method is used and : inventory information for part 311 of seminole corp. discloses the following information for the month of june.june 1

Past experience has shown that the ending inventory for : past experience has shown that the ending inventory for each month should be equal to 10 of the next months sales in

The types of decision are that should be transfered to the : the types of decision are that should be transfered to the new divisional managing directors if such reogranization is

If a company purchases a delivery truck to be used in its : if a company purchases a delivery truck to be used in its business the trucks cost will initially be recorded as the

Smoky mountain corporation makes two types of hiking : smoky mountain corporation makes two types of hiking boots-xtreme and the pathfinder. data concerning these two

User Account

All Pages