Question
A Company engaged in the following transactions during August. August beginning balance, 6 units at $10 per unit August 2, 10 units were purchased at
A Company engaged in the following transactions during August.
August beginning balance, 6 units at $10 per unit
August 2, 10 units were purchased at $12 per unit.
August 18, 11 units were purchased at $14 per unit.
August 29, 13 units were sold.
The company uses the LIFO perpetual inventory system.
Answer the following questions using the above information. SHOW YOUR WORK TO RECEIVE CREDIT. (Hint: you do NOT need to prepare an entire inventory table. Just answer the questions)
a-what are the layers in inventory and the total cost of inventory after the August 18 purchase?
b-what was the amount of cost of goods sold for the sale on August 29?
c-what are the layers in ending inventory on August 31?
d-what is the total cost of ending inventory on August 31?
e-what is the amount of cost of goods sold for the sale on August 29 if the company uses FIFO instead of LIFO?
f-what are the layers in ending inventory and the total cost of inventory on August 31 if the company uses FIFO instead of LIFO?
g-Would net income be lower if the company used LIFO or FIFO? Why?
I dont need explanation just answers for a-g
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