Question
Citizens Economy Sales, Inc. uses a perpetual inventory system and reports the following transactions for the month of December for one of its products: Date
Citizens Economy Sales, Inc. uses a perpetual inventory system and reports the following transactions for the month of December for one of its products:
| Date | Explanation | Units | Cost/Price |
| December 1 | Beginning inventory | 6 | $40.00 |
| December 6 | Purchase | 4 | 42.00 |
| December 11 | Sale | 7 | 88.99 |
| December 24 | Purchase | 12 | 43.40 |
| December 26 | Purchase | 5 | 44.00 |
| December 31 | Sale | 10 | 88.99 |
Required: Use the templates provided in the assignment folder to complete the following requirements. Also, the corresponding Practice Problem is very similar to this problem.
Prepare inventory records using:
The FIFO method
The LIFO method
The weighted average method
Under each of the methods you prepared in part a.) above, compute Sales, Cost of Goods Sold and Gross Profit.
Prepare journal entries for December 26 and December 31 under all methods.
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International Financial Accounting And Reporting
Authors: Ciaran Connolly
6th Edition
1912350025, 978-1912350025
