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The Pharma company is a single product company. The company presents the following information regarding its activities during the month of December 2013. ● ● ● ● Dec. 01: Beginning inventory; 200 units @ $10 each. Dec. 02: Sold 160 units @ $16 each. Dec. 12: Purchased 300 units @ $12 each. Dec. 18: Sold 240 units @ $17.50 each. Dec. 22: Purchased 320 units @ $14 each. Dec. 29: Sold 200 units @ $18 each. At the end of December, there were 220 units on hand according to a physical count of inventory. All purchases and sales are made on account. Required: Pharma company want to use best method at which he maximizes his gross Profit. Compute the value of Cost of goods sold and Value of of Remaining Inventory at the end of December by using 1. First in First out, Average Method and Last in First out. 2. Prepare journal entries and compute gross profit assuming the company uses a perpetual inventory system.

The Pharma company is a single product company. The company presents the following information regarding its activities during the month of December 2013. ● ● ● ● Dec. 01: Beginning inventory; 200 units @ $10 each. Dec. 02: Sold 160 units @ $16 each. Dec. 12: Purchased 300 units @ $12 each. Dec. 18: Sold 240 units @ $17.50 each. Dec. 22: Purchased 320 units @ $14 each. Dec. 29: Sold 200 units @ $18 each. At the end of December, there were 220 units on hand according to a physical count of inventory. All purchases and sales are made on account. Required: Pharma company want to use best method at which he maximizes his gross Profit. Compute the value of Cost of goods sold and Value of of Remaining Inventory at the end of December by using 1. First in First out, Average Method and Last in First out. 2. Prepare journal entries and compute gross profit assuming the company uses a perpetual inventory system.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assignment No. 3 The Pharma company is a single product company. The company presents the following information regarding its activities during the month of December 2013. ● ● ● ● ● ● Dec. 01: Beginning inventory; 200 units @ $10 each. Dec. 02: Sold 160 units @ $16 each. Dec. 12: Purchased 300 units @ $12 each. Dec. 18: Sold 240 units @ $17.50 each. Dec. 22: Purchased 320 units @ $14 each. Dec. 29: Sold 200 units @ $18 each. At the end of December, there were 220 units on hand according to a physical count of inventory. All purchases and sales are made on account. Required: Pharma company want to use best method at which he maximizes his gross Profit. Compute the value of Cost of goods sold and Value of of Remaining Inventory at the end of December by using 1. First in First out, Average Method and Last in First out. 2. Prepare journal entries and compute gross profit assuming the company uses a perpetual inventory system.
Transcribed Image Text:Assignment No. 3 The Pharma company is a single product company. The company presents the following information regarding its activities during the month of December 2013. ● ● ● ● ● ● Dec. 01: Beginning inventory; 200 units @ $10 each. Dec. 02: Sold 160 units @ $16 each. Dec. 12: Purchased 300 units @ $12 each. Dec. 18: Sold 240 units @ $17.50 each. Dec. 22: Purchased 320 units @ $14 each. Dec. 29: Sold 200 units @ $18 each. At the end of December, there were 220 units on hand according to a physical count of inventory. All purchases and sales are made on account. Required: Pharma company want to use best method at which he maximizes his gross Profit. Compute the value of Cost of goods sold and Value of of Remaining Inventory at the end of December by using 1. First in First out, Average Method and Last in First out. 2. Prepare journal entries and compute gross profit assuming the company uses a perpetual inventory system.
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