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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pears X
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Pears X
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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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Step 1: Define Inventory Valuation
VIEWStep 2: Preparation of perpetual inventory record using FIFO
VIEWStep 3: Preparation of perpetual inventory record using LIFO
VIEWStep 4: Preparation of perpetual inventory record using Weighted Average
VIEWStep 5: Indicate of method to pay least tax
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