Miller's Fashion House sells a variety of items of clothing including footwear for men. The business began the last quarter of 2014 with 25 pairs of the "Jordan” brand at a total cost of $152,500. The following transactions, relating to the Jordan brand, took place during the quarter.Using the FIFO method, what is the ending inventory balance at November 1, 2014?What is the accounting treatment if we are using the FIFO method for the transaction on November 14, 2014?What is the accounting treatment if we are using the FIFO method for the transaction on December 2, 2014?Using the FIFO method, the value of purchases and COGS after accounting for the transaction on November 1, 2014 are: October 10October 30November 1November 14November 30December 2Purchased 100 pairs of shoes on account at a cost of $5,945per pair. In addition Miller paid $405 in cash on each pair ofshoes to have the inventory shipped from the vendor'swarehouse to the Miller's showroom.During the month 90 pairs were sold at a unit selling price of$8,255.A new batch of 60 pairs was purchased on account at a totalcost of $406,5005 pairs of the sneakers purchased on November 1 were found tobe of the wrong description and returned to the supplierThe sales for November were 60 pairs of sneakers which yieldedtotal sales revenue of $430,000.Peter Fuller, a customer to whom 10 pairs were sold at the closeof business on November 30, returned 4 pairs of the sneakers,as they were of the wrong colour.

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Description: Miller's Fashion House sells a variety of items of clothing including footwear for men. The business began the last quarter of 2014 with 25 pairs of the "Jordan” brand at a total cost of $152,500. The following transactions, relating to the Jordan br

Fifo is an inventory valuation method under which value of inventory is calculated or recorded in…

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Miller's Fashion House sells a variety of items of clothing including footwear for men. The business began the last quarter of 2014 with 25 pairs of the "Jordan” brand at a total cost of $152,500. The following transactions, relating to the Jordan brand, took place during the quarter.

Using the FIFO method, what is the ending inventory balance at November 1, 2014?

What is the accounting treatment if we are using the FIFO method for the transaction on November 14, 2014?

What is the accounting treatment if we are using the FIFO method for the transaction on December 2, 2014?

Using the FIFO method, the value of purchases and COGS after accounting for the transaction on November 1, 2014 are:

October 10
October 30
November 1
November 14
November 30
December 2
Purchased 100 pairs of shoes on account at a cost of $5,945
per pair. In addition Miller paid $405 in cash on each pair of
shoes to have the inventory shipped from the vendor's
warehouse to the Miller's showroom.
During the month 90 pairs were sold at a unit selling price of
$8,255.
A new batch of 60 pairs was purchased on account at a total
cost of $406,500
5 pairs of the sneakers purchased on November 1 were found to
be of the wrong description and returned to the supplier
The sales for November were 60 pairs of sneakers which yielded
total sales revenue of $430,000.
Peter Fuller, a customer to whom 10 pairs were sold at the close
of business on November 30, returned 4 pairs of the sneakers,
as they were of the wrong colour.

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