SHOE INVENTORY PROBLEM 5-1

FIFO & LIFO & WA

1. Beginning Inventory 1,500 Pairs @ $20 each
2. Purchase 1,000 pairs @ $25 each
3. Cash Sale 900 pairs @ $50 each
4. Sale on Account 1,200 pairs @ $50 each
5. Purchase 2,000 @ $15 each
6. Sale on Account 800 pairs @ $50 each
7. Purchase 1,200 pairs @ $20 each
8. Purchase 1,600 pairs @ $30 each
9. Cash Sale 2,000 pairs @ $50
10. Sale on Account 1,800 pairs @ $50
11. Purchase 2,500 pairs @ 20 each
12. Purchase 900 pairs @ $25 each
13. Sale on Account 1,500 pairs @ $50 each
14. Cash Sale 2,000 pairs @ $50

GROSS PROFIT

	FIFO	LIFO	WA
Sales
Less Cogs
Gross Profit

Explain the reason why the gross profit for WA is located between the FIFO and LIFO gross

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Fill out Journal

ACCOUNTS

FIFO DEBIT

FIFO CREDIT

LIFO DEBIT

LIFO DEBIT

WA DEBIT

WA CREDIT

LIFO CREDIT