Question 3 Assume Orion Iron applies its inventory costing method perpetually at the time of each sale. At the end of the annual accounting period, December 31, the accounting records provided the following information: a. Inventory, Beginning For the year: b. Purchase, April 11 Transactions Units Unit Cost 3,000 $12 9,000 10 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) 8,000 13 13 3,000 6,000 f. Operating expenses (excluding income tax expense), $195,000 Requirement 1 Calculate the cost of ending inventory and the cost of goods sold using the FIFO method.
Question 3 Assume Orion Iron applies its inventory costing method perpetually at the time of each sale. At the end of the annual accounting period, December 31, the accounting records provided the following information: a. Inventory, Beginning For the year: b. Purchase, April 11 Transactions Units Unit Cost 3,000 $12 9,000 10 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) 8,000 13 13 3,000 6,000 f. Operating expenses (excluding income tax expense), $195,000 Requirement 1 Calculate the cost of ending inventory and the cost of goods sold using the FIFO method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Question 3
Assume Orion Iron applies its inventory costing method perpetually at the time of each sale. At the
end of the annual accounting period, December 31, the accounting records provided the following
information:
a. Inventory, Beginning
For the year:
b. Purchase, April 11
Transactions
Units
Unit Cost
3,000
$12
9,000
10
c. Purchase, June 1
d. Sale, May 1 (sold for $40 per unit)
e. Sale, July 3 (sold for $40 per unit)
8,000
13
13
3,000
6,000
f. Operating expenses (excluding income tax expense), $195,000
Requirement 1
Calculate the cost of ending inventory and the cost of goods sold using the FIFO method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff82875f-2dc8-4320-9414-ccfb2a63c640%2Ffe7ef4ac-1c18-46f8-865c-6a94c4b67954%2Fccxja1a_processed.png&w=3840&q=75)
Transcribed Image Text:Question 3
Assume Orion Iron applies its inventory costing method perpetually at the time of each sale. At the
end of the annual accounting period, December 31, the accounting records provided the following
information:
a. Inventory, Beginning
For the year:
b. Purchase, April 11
Transactions
Units
Unit Cost
3,000
$12
9,000
10
c. Purchase, June 1
d. Sale, May 1 (sold for $40 per unit)
e. Sale, July 3 (sold for $40 per unit)
8,000
13
13
3,000
6,000
f. Operating expenses (excluding income tax expense), $195,000
Requirement 1
Calculate the cost of ending inventory and the cost of goods sold using the FIFO method.
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