Question
J. R. Toys Store bought and sold a line of dolls of inventory and has the following records relating to its December 2012 inventory: Date
J. R. Toys Store bought and sold a line of dolls of inventory and has the following records relating to its December 2012 inventory:
Date
Item
Quantity (units)
Unit Cost
1st Dec.
Beginning inventory
11
$10
3rd Dec.
Sale
6
9th Dec.
Purchase
14
$15
11th Dec.
Sale
13
15th Dec.
Purchase
10
$17
Required:
J. R. Toys uses the perpetual inventory system, compute the cost of goods sold under:
i.FIFO(5 marks)
ii.LIFO(5 marks)
iii.Average Cost (round amounts to the nearest cent - i.e., two decimal places) (5 marks)
iv.Which method results in the highest cost of goods sold? (5 marks)
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