Question

Please complete all of P6-29A

06-29A Accounting for inventory using the perpetual inventory system-FIFO, LIFO, and weighted average, and comparing FIFO, LIFO, and weighted-average Iron Man began August with 65 units of iron inventory that cost $30 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sale Price Sale 50 $ 81 $ 50 Aug. 3 8 21 30 Purchase Sale Purchase 80 Requirements 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. 2. Prepare a perpetual inventory record for the merchandise inventory using the LIFO inventory costing method.

Answer 1

1. Perpetual FIFO:

	Cost of Purchases			Cost of Goods Sold			Inventory on Hand
Date	Units	Unit Cost	Total Cost	Units	Unit Cost	Total Cost	Units	Unit Cost	Total Cost
Aug 1							65	$ 30	$ 1,950
3				50	$ 30	1,500	15	30	450
8	85	$ 50	$ 4,250				15 85	30 50	450 4,250
							100		4,700
21				15 65	30 50	450 3,250	20	50	1,000
				80		3,700
30	20	45	900				20 20	50 45	1,000 900
							40		1,900
Totals	105		5,150	130		5,200	40		1,900

2. Perpetual LIFO :

	Cost of Purchases			Cost of Goods Sold			Inventory on Hand
Date	Units	Unit Cost	Total Cost	Units	Unit Cost	Total Cost	Units	Unit Cost	Total Cost
Aug 1							65	$ 30	$ 1,950
3				50	$ 30	$ 1,500	15	30	450
8	85	$ 50	$ 4,250				15 85	30 50	450 4,250
							100		4,700
21				80	50	4,000	15 5	30 50	450 250
							20		700
30	20	45	900				15 5 20	30 50 45	450 250 900
							40		1,600
Totals	105		5,150	130		5,500	40		1,600

3. Weighted Average: Perpetual

	Cost of Purchases			Cost of Goods Sold			Inventory on Hand
Date	Units	Unit Cost	Total Cost	Units	Unit Cost	Total Cost	Units	Unit Cost	Total Cost
Aug 1							65	$ 30	$ 1,950
3				50	$ 30	$ 1,500	15	30	450
8	85	$ 50	$ 4,250				15 85	30 50	450 4,250
							100	47	4,700
21				80	47	3,760	20	47	940
30	20	45	900				20 20	47 45	940 900
							40	46	1,840
Totals	105		5,150	130		5,260	40		1,840

4.

	FIFO	LIFO	Weighted Average
Cost of Goods Sold	$ 5,200	$ 5,500	$ 5,260

5.

	FIFO	LIFO	Weighted Average
Sales Revenue	$ 10,050	$ 10,050	$ 10,050
Less: Cost of Goods Sold	5,200	5,500	5,260
Gross Profit	$ 4,850	$ 4,550	$ 4,790

6. FIFO.