Question

5 Steel Mill began August with 55 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: Click the icon to view the transactions.) Read the requirements ple-29 Requirement 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest Inventory layers first.) Purchases Inventory on Hand Unit Cost Total Total Cost Cost of Goods Sold Unit Total Quantity Cost Cost Date Quantity Cost Unit Cost E35 $25 Quantity SS 10 Aug 1 $1,925 45 $35 $1,575 $250 $525390 Totals Requirement 2. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calcula the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the olde inventory layers first.) ditemprod pearsonomg.com/api/v1/print/accounting

Answer 1

1. FIFO Perpetual Inventory:

	Purchases			Cost of Goods Sold			Inventory on Hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Aug 1							55	$ 35	$ 1,925
3				45	$ 35	$ 1,575
8	75	$ 52	$ 3,900				10 75	35 52	350 3,900
21				10 60	35 52	350 3,120	15	52	780
30	10	55	550				15 10	52 55	780 550
Totals	85		$ 4,450	115		$ 5,045	25		$1,330

2. LIFO Perpetual Inventory :

	Purchases			Cost of Goods Sold			Inventory on Hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Aug 1							55	$ 35	$ 1,925
3				45	$ 35	$ 1,575	10	35	350
8	75	$ 52	$ 3,900				10 75	35 52	350 3,900
21				70	52	3,640	10 5	35 52	350 260
30	10	55	550				10 5 10	35 52 55	350 260 550
	85	$ 4,450		115		$ 5,215	25		$1,160

3. Weighted Average Perpetual Inventory:

	Purchases			Cost of Goods Sold			Inventory on Hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Aug 1							55	$ 35	$1,925
3				45	$ 35	$ 1,575	10	35	350
8	75	$ 52	$ 3,900				10 75	35 52	350 3,900
							85	50	4,250
21				70	50	3,500	15	50	750
30	10	55	550				15 10	50 55	750 550
Totals	85		$ 4,450	115		$ 5,075	25		$1,300

4.

	FIFO	LIFO	Weighted Average
Cost of Goods Sold	$ 5,045	$ 5,215	$ 5,075

5.

	FIFO	LIFO	Weighted Average
Sales Revenue	$ 9,685	$ 9,685	$ 9,685
Cost of Goods Sold	5,045	5,215	5,075
Gross Profit	$ 4,640	$ 4,470	$ 4,610

6. FIFO.