Open Rec Limited ('ORL') uses the perpetual inventory system andthe weighted average cost method. Below is ORL's record of inventorypurchases and sales for the month of October 20x2.1 Oct5 Oct9 OctSales12 Oct Sales16 Oct Purchase25 Oct Sales30 Oct Sales1DateRequired:23DescriptionBeginning inventoryPurchaseUnits Unit cost ($) Unit sale price ($)125451056012060150858065809080100Calculate the sales revenue, cost of goods sold, and gross profit ofORL for October 20x2.Calculate the ending inventory of October 20x2 if ORL used theFIFO costing method instead.Discuss whether the cost of goods sold and ending inventory ofOctober 20x2 would be higher or lower if ORL used the LIFOcosting method instead. Briefly explain why.

Name: Open Rec Limited ('ORL') uses the perpetual inventory system andthe w
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Description: Open Rec Limited ('ORL') uses the perpetual inventory system andthe weighted average cost method. Below is ORL's record of inventorypurchases and sales for the month of October 20x2.1 Oct5 Oct9 OctSales12 Oct Sales16 Oct Purchase25 Oct Sales30 Oct S

FIFO states that the inventory purchased first would be sold first by the company. Whereas, LIFO…

Answered: Open Rec Limited ('ORL') uses the…

Business

Accounting

Open Rec Limited ('ORL') uses the perpetual inventory system and the weighted average cost method. Below is ORL's record of inventory purchases and sales for the month of October 20x2.

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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