Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the table below shows the beginning inventory, pur

The table below shows the beginning inventory, purchase and sale data for T-shirts over the...

60.1K

Verified Solution

Question

Accounting

The table below shows the beginning inventory, purchase and sale data for T-shirts over the month of April for Gpsum Company. Gpsum maintains a perpetual inventory system and closes its accounts at the end of the year.

Date Description Units Cost

April 3

Opening balance

24

$10

11

Purchases

26

$12

14

Sale

36

21

Purchases

18

$15

25

Sale

20

Required:

Calculate the cost of merchandise sold and ending inventory under the following inventory valuation method. Show all workings!

Ending Cost of Goods Sold Inventory

  1. FIFO (First-In, First-Out) ? ? (3 marks)

  1. LIFO (Last-In, First-Out) ? ? (3 marks)

  1. In a deflationary period, which of the above method gives the highest profit and why.

(2 marks)

A physical count of the T-shirt at April 30 indicated 10 units. Journalize the inventory losses based on LIFO method above. Explanation is not required.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Indicate the sources of demand for loanable funds, and discuss the factors that affect the demand...

Advance Math
1.2K views

what is the  historic development of counting techniques in math with examples.

Chemistry
1.2K views

Consider the following two solvents Solubility Solvent A 52g of product in 100mL at 100 celcius; 29g of...

Psychology
1.2K views

What does the term “hylomorphism” mean in relation to Aristotle’s Physics and Metaphysics? Explain how this represents...

Accounting
1.2K views

Which of the following cash payments would involve the immediate recording of an expense? Why? 1. Paid...

Physics
1.2K views

experiences a force of 4 x 10 N Calculate the charge present on Two electrons...

Geometry
1.2K views

7 From the top of a lighthouse 160 feet high the angle of depression of...

Basic Math
1.2K views

Anesthesia. When a person has a cavity filled, the dentist typically gives a local anesthetic....

Accounting
1.2K views

lable at 1. Rennie, a 12 year old middle school student, just agreed to take...

Accounting
1.2K views

For proper internal controls over issuing merchandise, who should maintain perpetual inventory records of finished...

Accounting
1.2K views

On balance, do you think that the kind of outsourcing undertaken by American health care...

Finance
1.2K views

True False Question 5 (1 point) In the definition of the perpetuity and the annuity...