a. Compute the cost of goods sold and ending inventory for the month of October...
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Accounting
a. Compute the cost of goods sold and ending inventory for the month of October 2019 using each of the following inventory costing method:
i. First-In-First-Out (FIFO)
ii. Last-In-Last-Out (LIFO)
iii. Weighted average cost method
b. Prepare the income statement to show the gross profit for Constant Limited for the month ended 31 October 2019 under weighted average cost method.
c. Prepare journal entries to record the sales and cost of goods sold on 31 October 2019 assuming FIFO is adopted. Narration is NOT required.
d. When the inventory costs are rising,
i. which inventory costing method produces the highest amount of cost of goods sold and why?
ii. which inventory costing method produces the highest amount of gross profit and why?
Constant Limited is engaged in selling plastic bottles. The company uses the perpetual inventory system. The following is the company's inventory record for the month ended 31 October 2019. All purchases and sales are made on account. Transactions Selling Price $ per unit 18 Date 2019 1 October 10 October 20 October 31 October Units Cost Price $ per unit 300 100 20025 430 | Opening Balance Purchases Purchases Sales 22 50
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