Reference no: EM13334755

The perpetual inventory records of the Park Company indicate the following transactions in the month of June

unit cost/Unit

inventory June 1 200 $3.20

Purchases

3-Jun 200 3.5

2-Jun 250 3.6

24-Jun 300 3.65

sales

6-Jun 300

21-Jun 200

27-Jun 150

Required

Compute the cost of goods sold for June and the inventory at the end of June, using each of following cost flow assumptions

1. FIFO

2. LIFO

3. AVERAGE COST(ROUND UNIT TO 2 DICIMAL PLACE)

4. IF PARK COMPANY USES IFRS, WHICH OF THE PREVIOUS ALTERNATIVES WOULD BE ACCEPTABLE, AND WHY?

Dollar value LIFO on January 1,2009 the sato company adopted the dollars value LIFO method of inventory costing the company ending inventory records appears as follows:

year Current Cost index

2009 40000 100

2010 56100 120

2011 58500 130

2012 70000 140

Compute the ending inventory for the years 2009, 2010, 2011, and 2012 using the dollar value LIFO methods

The following information for 2010 is available for the Marino Company

The beginning inventory is 100,000

Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken

Purchases returns of 4,000 were made

At Dec 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30

The company made the sale of 640,000 the gross selling price per unit is twice the net cost of each unit sold

Sales allowance of 6000 were made

The company uses the LIFO periodic method and the gross method for purchases discounts

1. compute the cost of the ending inventory before the physical inventory is taken

2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from beginning inventory