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P-F:6-28A Accounting for inventory using the perpetual inventory system-FIFO, LIFO, and weighted-average (Learning Objectives 2, 3) Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. During the month, Fit Gym purchased and sold merchandise on account as follows: Jan. 5 Purchase 13 Sale 18 Purchase 26 Sale 156 crates @ $ 64 each 180 crates @ $ 100 each 114 crates @ $ 75 each 150 crates @ $ 116 each Requirements 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 2. Ending Merch. Inv. $990 3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) 4. If the business wanted to pay the least amount of income taxes possible, which method would it choose?

P-F:6-28A Accounting for inventory using the perpetual inventory system-FIFO, LIFO, and weighted-average (Learning Objectives 2, 3) Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. During the month, Fit Gym purchased and sold merchandise on account as follows: Jan. 5 Purchase 13 Sale 18 Purchase 26 Sale 156 crates @ $ 64 each 180 crates @ $ 100 each 114 crates @ $ 75 each 150 crates @ $ 116 each Requirements 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 2. Ending Merch. Inv. $990 3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) 4. If the business wanted to pay the least amount of income taxes possible, which method would it choose?

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 24CE: Inventory Costing: Average Cost Refer to the information for Filimonov Inc. and assume that the...
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Acces X Pears X < Pears X 589/products/79c3fa4c-a84f-42ba-b87a-e36a400bca00/pages/urn:pearson:entity:11... C End of Chapter: Merchandise Inventory P-F:6-28A Accounting for inventory using the perpetual inventory system-FIFO, LIFO, and weighted-average (Learning Objectives 2, 3) Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. During the month, Fit Gym purchased and sold merchandise on account as follows: Jan. 5 Purchase 13 Sale 18 26 Sale P Proble X Purchase 2. Ending Merch. Inv. $990 6-44 b HORN Requirements 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. > 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 156 crates @ $ 64 each 180 crates @ $ 100 each 114 crates @ $ 75 each 150 crates @ $ 116 each 3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.) 4. If the business wanted to pay the least amount of income taxes possible, which method would it choose? X Spo
Transcribed Image Text:Acces X Pears X < Pears X 589/products/79c3fa4c-a84f-42ba-b87a-e36a400bca00/pages/urn:pearson:entity:11... C End of Chapter: Merchandise Inventory P-F:6-28A Accounting for inventory using the perpetual inventory system-FIFO, LIFO, and weighted-average (Learning Objectives 2, 3) Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. During the month, Fit Gym purchased and sold merchandise on account as follows: Jan. 5 Purchase 13 Sale 18 26 Sale P Proble X Purchase 2. Ending Merch. Inv. $990 6-44 b HORN Requirements 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. > 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 156 crates @ $ 64 each 180 crates @ $ 100 each 114 crates @ $ 75 each 150 crates @ $ 116 each 3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.) 4. If the business wanted to pay the least amount of income taxes possible, which method would it choose? X Spo
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