ACCOUNTING 505-Fit World began January with merchandise

ACCOUNTING 505-Fit World began January with merchandise

Fit World began January with merchandise inventory of 80 crates of vitamins that cost a total of $4,000. Durnind the month, Fit Worldpurchased and sold merchandise on account as follows:Jan.5Purchase140 crates @ $55 each13Sale160 crates @ $100 each18Purchase160 crates @ $60 each26Sale170 crates @ $110 eachRequirements1. Prepare a perpetual inventory record, using the FIFO inventory costing method,and determine the company’s cost of goods sold, ending merchandise inventory andgross profit.2. Prepare a perpetual inventory record, using the LIFO inventory costing method,and determine the company’s cost of goods sold, ending merchandise inventory andgross profit.3. Prepare a perpetual inventory record, using the weighted-average inevntory costing method,and determine the company’s cost of goods sold, ending merchandise inventory andgross profit. (Round weighted average cost per unit to the nearest cent and all other amounts to thenearest dollar.)4. If the Business wanted to pay the least amount of income taxes possible, which method would it choose?


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