BZU uses perpetual inventory system to record purchases and sales and FIFL, LIFO and AVC methods to evaluate its inventories. The company has provided the following information about commodity DX-13C and wants your assistance in computing the cost of commodity DX-13C sold and the cost of ending inventory of commodity DX-13C. • Aug. 01: Beginning inventory; 200 units @ $40 per unit. • Aug. 07: Sales; 140 units@$50 • Aug. 12: Purchases; 160 units @ $42 per unit. • Aug. 17: Sales; 80 units. $50 • Aug. 23: Sales; 40 units. $50 • Aug. 27: Purchases; 80 units @ $44 per unit. • Aug. 30: Sales; 100 units. $60 Required: 1. Prepare a FIFO, LIFO and AVC perpetual inventory card. 2. Compute cost of goods sold and the cost of ending inventory using all these three methods. 3. Pass Necessary Journal entries for each and every method.
BZU uses perpetual inventory system to record purchases and sales and FIFL, LIFO and AVC methods to evaluate its inventories. The company has provided the following information about commodity DX-13C and wants your assistance in computing the cost of commodity DX-13C sold and the cost of ending inventory of commodity DX-13C. • Aug. 01: Beginning inventory; 200 units @ $40 per unit. • Aug. 07: Sales; 140 units@$50 • Aug. 12: Purchases; 160 units @ $42 per unit. • Aug. 17: Sales; 80 units. $50 • Aug. 23: Sales; 40 units. $50 • Aug. 27: Purchases; 80 units @ $44 per unit. • Aug. 30: Sales; 100 units. $60 Required: 1. Prepare a FIFO, LIFO and AVC perpetual inventory card. 2. Compute cost of goods sold and the cost of ending inventory using all these three methods. 3. Pass Necessary Journal entries for each and every method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
261.
Subject : - Accounting
Transcribed Image Text:BZU uses perpetual inventory system to record purchases and sales and FIFL, LIFO and AVC methods to evaluate its
inventories. The company has provided the following information about commodity DX-13C and wants your assistance in
computing the cost of commodity DX-13C sold and the cost of ending inventory of commodity DX-13C.
• Aug. 01: Beginning inventory; 200 units @ $40 per unit.
Aug. 07: Sales; 140 units@$50
Aug. 12: Purchases; 160 units @ $42 per unit.
Aug. 17: Sales; 80 units. $50
Aug. 23: Sales; 40 units. $50
Aug. 27: Purchases; 80 units @ $44 per unit.
Aug. 30: Sales; 100 units. $60
Required:
1. Prepare a FIFO, LIFO and AVC perpetual inventory card.
2. Compute cost of goods sold and the cost of ending inventory using all these three methods.
3. Pass Necessary Journal entries for each and every method.
.
.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 6 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education