newatthis91
Jun 24, 2013, 08:12 AM
June 1 inventory 75 units at $40
6 sale 60 units
14 purchase 90 units at $42
19 sale 50 units
25 sale 20 units
30 purchase 80 units at $45
FIFO method
A) Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.
B) Based upon the preceding data, would you expect the inventory to be higher or lower using the last in, first out method?
6 sale 60 units
14 purchase 90 units at $42
19 sale 50 units
25 sale 20 units
30 purchase 80 units at $45
FIFO method
A) Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.
B) Based upon the preceding data, would you expect the inventory to be higher or lower using the last in, first out method?