Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions a. Inventory, Beginning For the year: b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $38 per unit) e. Sale, July 3 (sold for $38 per unit) f. Operating expenses (excluding income tax expense), $19,300 Cost of Ending Inventory Cost of Goods Sold $ FIFO 7,400 $ Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods. LIFO Unite 300 8,450 700 600 300 550 Unit Cost $ 10 B 11

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Chapter6: Inventories
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Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...
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Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method
perpetually at the time of each sale, as if it uses perpetual inventory system. Assume its accounting records provided the following
information at the end of the annual accounting period, December 31.
Transactions
a. Inventory, Beginning
For the year:
b. Purchase, April 11
c. Purchase, June 1
d. Sale, May 1 (sold for $38 per unit)
e. Sale, July 3 (sold for $38 per unit)
f. Operating expenses (excluding income tax expense), $19,300
Cost of Ending Inventory
Cost of Goods Sold
$
FIFO
7,400 $
Required:
Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.
LIFO
Unita
300
8,450
700
600
300
550
Unit Cost
$10
B
11
Transcribed Image Text:Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions a. Inventory, Beginning For the year: b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $38 per unit) e. Sale, July 3 (sold for $38 per unit) f. Operating expenses (excluding income tax expense), $19,300 Cost of Ending Inventory Cost of Goods Sold $ FIFO 7,400 $ Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods. LIFO Unita 300 8,450 700 600 300 550 Unit Cost $10 B 11
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