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A record of transactions for the month of June was as follows: Purchases Sales Units @ Units Beginning Balance 500 $ 5.00 June 3 300
A record of transactions for the month of June was as follows:
Purchases | Sales | ||||||
Units | @ | Units | |||||
Beginning Balance | 500 | $ 5.00 | June | 3 | 300 | ||
June | 7 | 1250 | $ 5.10 | 10 | 1000 | ||
18 | 600 | $ 5.25 | 22 | 800 | |||
25 | 750 | $ 5.50 | 28 | 400 |
The company uses the perpetual inventory system and FIFO cost flow assumption for internal reporting. The company uses LIFO cost flow assumption for external and tax reporting.
(1.) Determine ending inventory using FIFO
(2.) Determine ending inventory using LIFO
(3.) Prepare the Adjusting JE needed assuming the beginning balance in LIFO Reserve is $800 (credit balance)
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