INVENTORY

Example #3

The following pertains to B Co. for 2013:

1/1BI= 4,000# at $5.50 each = $22,000

1/17Purch = 1,000# at $6.00 each = 6,000

3/22Purch = 3,000# at $7.00 each = 21,000

10/15Purch = 3,000# at $7.50 each = 22,500

GAS = $71,500

1/10Sale= 2,000#

4/15Sale= 1,500#

11/20Sale= 3,000#

REQUIRED:

1. Using PERIODIC Inventory calculate EI and CGS under

a. FIFO

b. LIFO

c. Weighted Avg.

2. Using PERPETUAL Inventory calculate EI and CGS under

a. FIFO

b. LIFO

c. Moving Avg.