uri Inc had 100 units in beginning inventory at a total cost

uri Inc. had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of The cost of goods sold

Solution

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance Oct1 100 100 10000 100 100 10000 Purchasse 200 130 26000 115 130 14950 85 130 11050 TOTAL 300 36000 215 24950 85 11050 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance Oct1 100 100 10000 15 100 1500 85 100 8500 Purchasse 200 130 26000 200 130 26000 TOTAL 300 36000 215 27500 85 8500 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance Oct1 100 100 10000 Purchasse 200 130 26000 TOTAL 300 120 36000 215 120 25800 85 120 10200 FIFO LIFO Average Cost f ending inventoy 11050 8500 10200 Cost of Goods sold 24950 27500 25800 Req : FIFO results in highest income Req: FIFO results in inventories to be shown in Balance sheet at current cost. Req: LIFO results in least taxes in firrst year