Question
Beltana Cookies had following transactions occur in June to September 2020. Jun. 2 Hany buys 20 kg flour on account from Lisbon Company for Rp.
Beltana Cookies had following transactions occur in June to September 2020. Jun. 2 Hany buys 20 kg flour on account from Lisbon Company for Rp. 240,000 (Rp. 12,000 each), FOB destination, terms n/30. 16 She sells 10 kg flour for Rp. 230,000 cash. 25 She pays the amount owed to Lisbon Company. Jul. 2 She buys 10 kg flour on account from Lisbon Company for Rp. 12,360, FOB destination, terms n/30. 30 Hany sells 20 kg flour for a total of Rp. 460.000 cash. 31 She pays the amount owed to Lisbon. Aug. 1 She buys 20 kg flour on account from Lisbon Company for Rp. 244,800 (Rp. 12,240 each), FOB destination, terms n/30. 13 She sells 30 kg flour for a total of Rp. 690,000 cash. 30 Hany pays the amounts owed to Lisbon. Sep 4 She buys 30 kg flour on account from Lisbon Company for Rp. 375,000 (Rp. 12,500 each), FOB destination, terms n/30. 27 She sells 10 kg flour for Rp. 230,000 cash. Assume that Beltana use a periodic inventory system and at the end of May, she had 30 kg flour on hand at a cost of Rp. 11,900 each. Instructions:
Compare and explain results for the two cost flow assumptions (FIFO and Average)
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