Question
Bears, Inc. began the year with merchandise inventory of 50 computers that each cost $500. During January, Bears purchased and sold merchandise on account as
Bears, Inc. began the year with merchandise inventory of 50 computers that each cost $500. During January, Bears purchased and sold merchandise on account as follows:
Jan 5 - Purchase - 15 sofas at $515
Jan 10 - Sale - 40 Sofas
Jan 20 - Purchase - 20 sofas at $525
Jan 25 - Sale - 30 sofas
Determine the COGS sold and ending inventory values under FIFO, LIFO and weighted-average. Additionally, determine the inventory method with the highest and lowest COGS as well as the highest and lowest value of ending inventory. You will need to prepare a perpetual inventory records for this problem.
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