The table below shows the beginning inventory, purchase and sale data for T-shirts over the...
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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
- FIFO (First-In, First-Out)
- LIFO (Last-In, First-Out) ?
- In a deflationary period, which of the above method gives the highest profit and why.
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.
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