March Beginning and Ending Inventory Balance March 1st $4,950 $4,950 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $3,050 March 31st $2,875 LIFO FIFO LIFO Inventory Purchase Quantity January 10th February 7th 100 150 E February 19th 0 20 40 60 80 Quantity 125 100 120 140 160 FIFO Inventory Purchase Price $15.00 $14.00 $13.00 $12.50 $12.00 $13.00 $14.00 $11.00 $10.00 January 10th February 7th February 19th Required: 1. During the Month of March there were no purchases and only one sale occurred. What was the quantity sold during March? Quantity sold 2. Compute the cost of goods sold for Capistrano Retailers for the month of March under each Method: FIFO Cost of Goods Sold LIFO 3. Which inventory costing method may be preferred for income tax reporting purposes?

March Beginning and Ending Inventory Balance March 1st $4,950 $4,950 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $3,050 March 31st $2,875 LIFO FIFO LIFO Inventory Purchase Quantity January 10th February 7th 100 150 E February 19th 0 20 40 60 80 Quantity 125 100 120 140 160 FIFO Inventory Purchase Price $15.00 $14.00 $13.00 $12.50 $12.00 $13.00 $14.00 $11.00 $10.00 January 10th February 7th February 19th Required: 1. During the Month of March there were no purchases and only one sale occurred. What was the quantity sold during March? Quantity sold 2. Compute the cost of goods sold for Capistrano Retailers for the month of March under each Method: FIFO Cost of Goods Sold LIFO 3. Which inventory costing method may be preferred for income tax reporting purposes?

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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