Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFOand (2) LIFO.Ending Inventory$(1)FIFO$(2)LIFO The following is a record of Blossom Company's transactions for Boston Teapots for the month of May 2020.May 11228BalancePurchasePurchase492 units @ $21.00$26.00492 units @ $30.00738 units @May 1020SaleSale369 units @664 units@$39.00$39.00

FIFO Method :— It is one of the method of inventory valuation in which beginning inventory and old…

Answered: Assuming that perpetual records are…

Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFO and (2) LIFO. Ending Inventory $ (1) FIFO $ (2) LIFO

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFO
and (2) LIFO.
Ending Inventory
$
(1)
FIFO
$
(2)
LIFO

The following is a record of Blossom Company's transactions for Boston Teapots for the month of May 2020.
May 1
12
28
Balance
Purchase
Purchase
492 units @ $21.00
$26.00
492 units @ $30.00
738 units @
May 10
20
Sale
Sale
369 units @
664 units
@
$39.00
$39.00

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Listed below are selected examples of transactions related to the purchase and sale of inventory from the perspective of the seller or the buyer as indicated. Assume a perpetual inventory system is in use. 1. N 2. 3. 4. 5. 6. 7. 8. 9. 10. 3. For each of the above transactions, indicate (a) the basic type (asset, liability, revenue, or expense) of each account to be debited and credited; (b) the specific name(s) of the account(s) to debit and credit (for example, Inventory); and (c) whether each account is increased (+) or decreased (-) and by what amount. The first one has been done for you as an example. (Enter specific debited account items in alphabetical order. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 4. (a) Item Basic Type of Account 1. Asset 2. 5. 6. 7. 8. Buyer: Purchase of $2,940 of inventory for cash. Buyer: Return of $630 of inventory to seller for credit on account. Buyer: Purchase of $3,360 of inventory on…
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