Iron Hill began August with 46 units of iron inventory that cost $40 each. During August, the company completed the following inventory transactions: Aug. 3 Sale 38 units @ $60 each Aug.8 Purchase 72 units @ $45 each Aug.21 Sale 65 units @ $70 each Aug.30 Purchase 35 units @ $48 each 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 Unit Cost Total Unit Quantity Cost Total Cost Total Cost |Unit Date Quantity Quantity Cost Cost Aug. 1 3 21 30 Totals

Iron Hill began August with 46 units of iron inventory that cost $40 each. During August, the company completed the following inventory transactions: Aug. 3 Sale 38 units @ $60 each Aug.8 Purchase 72 units @ $45 each Aug.21 Sale 65 units @ $70 each Aug.30 Purchase 35 units @ $48 each 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 Unit Cost Total Unit Quantity Cost Total Cost Total Cost |Unit Date Quantity Quantity Cost Cost Aug. 1 3 21 30 Totals

Name: Iron Hill began August with 46 units of iron inventory that cost $40
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Description: Iron Hill began August with 46 units of iron inventory that cost $40 each. During August, the companycompleted the following inventory transactions:38 units @ $60 eachAug. 3Aug.8SalePurchase72 units @ $45 eachAug.21Sale65 units @ $70 eachAug.30Purch

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 46 units of iron inventory that cost $40 each. During August, the company
completed the following inventory transactions:
38 units @ $60 each
Aug. 3
Aug.8
Sale
Purchase
72 units @ $45 each
Aug.21
Sale
65 units @ $70 each
Aug.30
Purchase
35 units @ $48 each
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=?
Inventory on Hand
Unit
Cost
Purchases
Cost of Goods Sold
Unit
Total
Total
Cost
Total
Cost
Unit
Date
Quantity
Quantity
|Quantity
Cost
Cost
Cost
Aug. 1
3
21
30
Totals

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