Q3: LT sells eycles. During the current year, Land Travel purchased ten of these cycles at the following costa Unita Purchased Unit Cost Total Cost Purchase Date Apr. 1 Apr. 17 May 5. 3 Rs. 3,700 3,900 4,000 Rs. 11,100 15,600 12,000 Rs. 38,700 4 3 10 On April 25, LT sold four cycles. The remaining six cycles remained in inventory at June 30, the end of LT fiscal year. Instructions III. Prepare inventory subsidiary ledger under FIFO, LIFO and average inventory valuation method. IV. Prepare journal entry for April 25 sales and relevant cost of goods sold under each of the method. V. Which of three cash flow assumption will result in Land Travel reporting highest net income for the current year?
Q3: LT sells eycles. During the current year, Land Travel purchased ten of these cycles at the following costa Unita Purchased Unit Cost Total Cost Purchase Date Apr. 1 Apr. 17 May 5. 3 Rs. 3,700 3,900 4,000 Rs. 11,100 15,600 12,000 Rs. 38,700 4 3 10 On April 25, LT sold four cycles. The remaining six cycles remained in inventory at June 30, the end of LT fiscal year. Instructions III. Prepare inventory subsidiary ledger under FIFO, LIFO and average inventory valuation method. IV. Prepare journal entry for April 25 sales and relevant cost of goods sold under each of the method. V. Which of three cash flow assumption will result in Land Travel reporting highest net income for the current year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Q3: LT sells cycles. During the current year, Land Travel purchased ten of these ceycles at the following
costs
Unita
Purchased
Total
Cost
Purchase Date
Apr. 1
Apr. 17
May 5
Unit
Cost
3 Rs. 3,700
3,900
4,000
Rs. 11,100
15,600
12,000
Rs. 38,700
4
3
10
On April 25, LT sold four cycles. The remaining six cycles remained in inventory at June 30, the end of
LT fiscal year.
Instructions
III.
Prepare inventory subsidiary ledger under FIFO, LIFO and average inventory valuation
method.
IV.
Prepare journal entry for April 25 sales and relevant cost of goods sold under each of the
method.
Which of three cash flow assumption will result in Land Travel reporting highest net income
for the current year?
V.
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