On March 31, 2020, Sole way, Inc. sold 800 computers to Xavier Company. Prior to this sale the Sole way records for these units included the following cost layers: Purchase Date Quantity Unit Cost Total Cost Mar. 11, 2019 500 20 10,000 Mar. 19, 2019 1200 23 27,600 Total on hand 1700 37,600 Required: ⦁ Complete a subsidiary ledger record for the computer using each of the three inventory valuation methods listed below ⦁ Average cost. ⦁ FIFO. ⦁ LIFO. Your inventory records should show both purchases of this product, the sale on Mar 31, and the balance on hand on Mar 31, 2020. ⦁ Which of the three cost flow assumptions will result in reporting the lowest net income for the current year? Explain
Question: 3
On March 31, 2020, Sole way, Inc. sold 800 computers to Xavier Company. Prior to this sale the Sole way records for these units included the following cost layers:
Purchase Date Quantity Unit Cost Total Cost
Mar. 11, 2019
500 20 10,000
Mar. 19, 2019
1200 23 27,600
Total on hand 1700 37,600
Required:
⦁ Complete a subsidiary ledger record for the computer using each of the three
⦁ Average cost.
⦁ FIFO.
⦁ LIFO.
Your inventory records should show both purchases of this product, the sale on Mar 31, and the balance on hand on Mar 31, 2020.
⦁ Which of the three cost flow assumptions will result in reporting the lowest net income for the current year? Explain
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