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Use of perpetual inventory system for merchandise inventory calculation Baker Company had the following information for the year ending December 31: Units Unit Cost Beginning
Use of perpetual inventory system for merchandise inventory calculation
Baker Company had the following information for the year ending December 31:
Units Unit Cost
Beginning inventory 200$44.00
Purchase: April 6 320$42.00
Sale: May 4 410
Purchase: July 19 550$39.00
Sale: September 9 520
Purchase: October 10 460$38.00
Baker uses the perpetual inventory system and the LIFO method.
Required:
Using LIFO
(a) Compute the cost of ending inventory.
(b) Compute the cost of goods sold for the year.
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