jazzyshoes2004
Jul 29, 2010, 01:40 PM
Janet starts a merchandising business on June 1 and enters into three inventory purchases:
June 7 - 10 units @ $6.00 cost
June 14 - 20 units @ $12.00 cost
June 21 - 15 units @ $14.00 cost
Janet sells 15 units for $25.00 each on June 15. Eight of the sold units are from the June 7 purchase and seven are from June 14 purchase. Janet uses a perpetual inventory system. Determine the costs assigned to the June 31 ending inventory when costs are assigned based on (a) FIFO. (b) LIFO, (c) weighted average, and (d) specific identification.
June 7 - 10 units @ $6.00 cost
June 14 - 20 units @ $12.00 cost
June 21 - 15 units @ $14.00 cost
Janet sells 15 units for $25.00 each on June 15. Eight of the sold units are from the June 7 purchase and seven are from June 14 purchase. Janet uses a perpetual inventory system. Determine the costs assigned to the June 31 ending inventory when costs are assigned based on (a) FIFO. (b) LIFO, (c) weighted average, and (d) specific identification.