Lewis Corporation Lewis Corporation had traditionally used the FIFO method of inventory valuation. You are given the information shown in Exhibit 1 on transactions during the year affecting Lewis's inventory account. (The purchases are in sequence during the year. The company uses a periodic inventory method.) EXHIBIT 1: Inventory Transactions 2009-2011 2009 Beginning balance 1,840 cartons @ $20.00 Purchases 600 cartons @ 20.25 800 cartons @ 21.00 400 cartons @ 21.25 200 cartons @ 21.50 Sales 2,820 cartons @ 34.00 2010 Beginning balance 1,020 cartons Purchases 700 cartons @ 21.50 700 cartons @ 21.50 700 cartons @ 22.00 1,000 cartons @ 22.25 Sales 3,080 cartons @ 35.75 2011 Beginning balance 1,040 cartons Purchases 1,000 cartons @ 22.50 700 cartons @ 22.75 700 cartons @ 23.00 23.50 700 cartons @ Sales 2,950 cartons @ 35.75 Question 1: Calculate the cost of goods sold and year-end inventory amounts for 2009, 2010, and 2011 using the (a) FIFO, (b) LIFO, and (c) average cost methods.

Lewis Corporation Lewis Corporation had traditionally used the FIFO method of inventory valuation. You are given the information shown in Exhibit 1 on transactions during the year affecting Lewis's inventory account. (The purchases are in sequence during the year. The company uses a periodic inventory method.) EXHIBIT 1: Inventory Transactions 2009-2011 2009 Beginning balance 1,840 cartons @ $20.00 Purchases 600 cartons @ 20.25 800 cartons @ 21.00 400 cartons @ 21.25 200 cartons @ 21.50 Sales 2,820 cartons @ 34.00 2010 Beginning balance 1,020 cartons Purchases 700 cartons @ 21.50 700 cartons @ 21.50 700 cartons @ 22.00 1,000 cartons @ 22.25 Sales 3,080 cartons @ 35.75 2011 Beginning balance 1,040 cartons Purchases 1,000 cartons @ 22.50 700 cartons @ 22.75 700 cartons @ 23.00 23.50 700 cartons @ Sales 2,950 cartons @ 35.75 Question 1: Calculate the cost of goods sold and year-end inventory amounts for 2009, 2010, and 2011 using the (a) FIFO, (b) LIFO, and (c) average cost methods.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

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