Assume Radio Tech uses a perpetual inventory system and the LIFO cost flow method. 1. Calculate the
Question:
Assume Radio Tech uses a perpetual inventory system and the LIFO cost flow method.
1. Calculate the cost of goods sold that will appear on Radio Tech’s income statement for the month of April.
2. Determine the cost of inventory that will appear on Radio Tech’s balance sheet at the end of April.
Radio Tech Sales & Service, Inc., began the month of April with three top-of-the-line radios in inventory, Model # RD58V6Q; each unit cost $235. During April, nine additional radios of the same model were purchased.
April 9 Purchased three units at $230 each
April 11 Sold five units at $350 each
April 17 Purchased two units at $195 each
April 18 Sold one unit at $350
April 20 Sold two units at $350 each
April 28 Purchased four units at $180 each
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
