Concept explainers
a.
Introduction: The perpetual inventory system of recording the inventory records includes the continuous updating of inventory records after each and every transaction of purchase of inventory and sales of inventory is made.
Cost of ending inventory and cost of goods sold under FIFO method.
b.
Introduction: Last in first out method implies that the inventory which have been received most recently is issued first for the purpose of cost of goods sold. Under this method, inventory that is purchased first remains in books.
Cost of ending inventory and cost of goods sold under LIFO.
c.
Introduction: The perpetual inventory system of recording the inventory records includes the continuous updating of inventory records after each and every transaction of purchase of inventory and sales of inventory is made.
Gross Profits of the business under both the methods.
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FINANCIAL ACCT.FUND.(LOOSELEAF)
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- Inventory Costing: LIFO Refer to the information for Filimonov Inc. and assume that the company uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.arrow_forwardBased on the data in Exercise 6-15 part (a) and assuming that cost was determined by the FIFO method, show how the inventory would appear on the balance sheet.arrow_forwardWhen inventory items are highly specialized, the best inventory costing method is ________. A. specific identification B. first-in, first-out C. last-in, first-out D. weighted averagearrow_forward
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