Solution-Discuss cost of goods sold using the fifo and lifo

Discuss cost of goods sold using the fifo and lifo methods

Reference no: EM131794646

Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Transactions	Units		Unit Cost
a. Inventory, Beginning		300	$	12
For the year:
b. Purchase, April 11		900		10
c. Purchase, June 1		800		13
d. Sale, May 1 (sold for $40 per unit)		300
e. Sale, July 3 (sold for $40 per unit)		600
f. Operating expenses (excluding income tax expense), $19,500

Required:

Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.

Reference no: EM131794646

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Discuss cost of goods sold using the fifo and lifo methods

Reference no: EM131794646

Reference no: EM131794646

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