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

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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Description: Please help me Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing methodperpetually at the time of each sale, as if it uses perpetual inventory system. Assume its accounting rec

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 5PA: Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Please help me

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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Step 2 Working Note #1:- Calculation of Units and cost available for sale

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Step 3 Working Note #2:- FIFO METHOD

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