Date Activities Units Acquired at Cost Units Sold at Retail Apr. I Beginning inventory 20 units @ $3.000.00 per unit Apr. 6 Purchase. 30 units @ $3.500.00 per unit Apr. 9 Sales 35 units @ $12.000.00 per unit 5 units @ $4,500.00 per unit 10 units @ $4.800.00 per unit Apr. 17 Purchase Apr. 25 Purchase 25 units @ $14,000.00 per unit Apr. 30 Sales Total 65 units 60 units Required: We understand that LIFO system is not recommended by IFRS. However, to understand the difference between LIFO and other systems, please: • Create the (table of) inventory cost flow under the LIFO system and record the necessary journal entries.
Date Activities Units Acquired at Cost Units Sold at Retail Apr. I Beginning inventory 20 units @ $3.000.00 per unit Apr. 6 Purchase. 30 units @ $3.500.00 per unit Apr. 9 Sales 35 units @ $12.000.00 per unit 5 units @ $4,500.00 per unit 10 units @ $4.800.00 per unit Apr. 17 Purchase Apr. 25 Purchase 25 units @ $14,000.00 per unit Apr. 30 Sales Total 65 units 60 units Required: We understand that LIFO system is not recommended by IFRS. However, to understand the difference between LIFO and other systems, please: • Create the (table of) inventory cost flow under the LIFO system and record the necessary journal entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How to do this. Please explain. Thank you.
Transcribed Image Text:Date
Activities
Units Acquired at Cost
Units Sold at Retail
Apr. I
Beginning inventory.
20 units @ $3,000.00 per unit
Apr. 6
Purchase
30 units @ $3,500.00 per unit
Apr. 9
Apr. 17
Apr. 25
Apr. 30
Sales.
35 units @ $12.000.00 per unit
5 units @ $4,500.00 per unit
10 units @ $4.800.00 per unit
Purchase
Purchase
Sales
25 units @ $14,000.00 per unit
Total
65 units
60 units
Required:
We understand that LIFO system is not recommended by IFRS. However, to understand the
difference between LIFO and other systems, please:
Create the (table of) inventory cost flow under the LIFO system and record the necessary
journal entries.
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