Question
Bailer Company's record of transactions for the month of November was the following: Purchases: Sales: Nov 1 (balance on hand)525 @ $7.00Nov 3550 @ $10.00
Bailer Company's record of transactions for the month of November was the following:
Purchases:Sales:
Nov 1 (balance on hand)525 @ $7.00Nov 3550 @ $10.00
51,400 @ $7.20 9 1,320 @ 10.00
8750 @ $7.35 10 625 @ 12.00
141,250 @ $7.42 22 1,100 @ 12.00
21825 @ $7.55 28850@ 13.00
29610@ $7.80 4,445
5,360
Please complete the following in an excel file:
#1 - Assume periodic inventory records are kept in units only. What is the inventory on November 30th using (a) LIFO and (b) average cost.
#2 - Assume perpetual inventory records are kept in dollars. What is the inventory on November 30th using (a) FIFO and (b) LIFO.
#3 - Calculate the COGS (Cost of Goods Sold) assuming the periodic inventory method was used and the inventory was valued at FIFO.
#4 - If the company were experiencing an inflationary period, which inventory method will show the highest net income? (FIFO, LIFO, or average cost)
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