Iron Hill began August with 45 units of iron inventory that cost $24 each. During August, the company completed the following inventory transactions: 35 units @ $63 each 8Purchase 70 units @ $32 each 65 units @ $77 each 30Purchase 25 units @ $47 each ch Aug. 3 Sale 21Sale Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. cost of goods sold = ending merchandise inventory = gross profit= Purchases Cost of Goods Sold Inventory on Hand Total Unit Quantity Cost Total Unit Quantity Cost Unit Quantity Cost Total Date Cost Cost Cost Aug. 1 3 8 21 30 Totals

Iron Hill began August with 45 units of iron inventory that cost $24 each. During August, the company completed the following inventory transactions: 35 units @ $63 each 8Purchase 70 units @ $32 each 65 units @ $77 each 30Purchase 25 units @ $47 each ch Aug. 3 Sale 21Sale Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. cost of goods sold = ending merchandise inventory = gross profit= Purchases Cost of Goods Sold Inventory on Hand Total Unit Quantity Cost Total Unit Quantity Cost Unit Quantity Cost Total Date Cost Cost Cost Aug. 1 3 8 21 30 Totals

Name: Iron Hill began August with 45 units of iron inventory that cost $24
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Description: Iron Hill began August with 45 units of iron inventory that cost $24 each. During August, the companycompleted the following inventory transactions:35 units @ $63 each8Purchase 70 units @ $32 each65 units @ $77 each30Purchase 25 units @ $47 each chA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Iron Hill began August with 45 units of iron inventory that cost $24 each. During August, the company
completed the following inventory transactions:
35 units @ $63 each
8Purchase 70 units @ $32 each
65 units @ $77 each
30Purchase 25 units @ $47 each ch
Aug. 3
Sale
21Sale
Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method,
and determine the company's cost of goods sold, ending merchandise inventory, and gross profit.
cost of goods sold =
ending merchandise inventory =
gross profit=
Purchases
Cost of Goods Sold
Inventory on Hand
Total
Unit
Quantity
Unit
Total
Unit
Quantity
Cost
Total
Date
Quantity
Cost
Cost
Cost
Cost
Cost
Aug. 1
3
8
21
30
Totals

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