FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Park Company’s perpetual inventory records indicate the following transactions in the month of June: 1. Compute the cost of goods sold for June and the inventory at the end of June using each of the following cost flow assumptions: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places and other amounts to the nearest dollar.) 2. Next Level Why are the cost of goods sold and ending inventory amounts different for each of the three methods？what do these amounts tell us about the purchase price of inventory during the year? 3. Next Level Which method produces the most realistic amount for net income? For inventory? Explain your answer. 4. Next Level If Park uses IFRS, which of the previous alternatives would be acceptable and why?
Transcribed Image Text:Units
Cost/Unit
Inventory, June 1
Purchases:
200
$3.20
June 3
June 17
200
3.50
250
3.60
June 24
Sales:
300
3.65
June 6
June 21
300
200
June 27
150
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