Reference no: EM132725668
Question - The following is information about product A at the end of 2019:
Date Description Qty
1-Dec-19 Starting inventory 80 Cost: 25
8-Dec-19 Sales 40 Price: 33
10-Dec-19 Purchase 50 Cost: 27
12-Dec-19 Purchase returns 10 Cost: 27
17-Dec- 19 Sales 70 Price: 33
19-Dec- 19 Sales returns 10 Price: 33
21-Dec- 19 Purchase 80 Cost: 30
The cost to sell product A is $ 3 per unit and the cost to complete product A order ready for sale is $ 7 per unit.
Instructions -
A. Calculate COGS, ending inventory, and gross profit using the FIFO method immortal (for a fee)!
b. Calculate the final preparation A using the LCNRV method.
c. Using the answer to (b), prepare the required journal entries by the date 31-Dec-2019. Use the following methods: (i) COGS; and (ii) Losses using the allowance method?