X LO5.6.7 Problem 5-12A Inventory Costing we Story Company's inventory records for the month of November...

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Answer 1

Answer #1

		FIFO	LIFO	Weighted Average
	Ending inventory	$8,643	$9,045	8,982
				(39833/1530*345)
	COGS	$31,190	$30,788	30,851
				(39833/1530*1185)

2	Sales	$75,330.00	$75,330.00	$75,330.00
	Less; COGS	$31,190.00	$30,788.00	$30,851.00
	Gross profit	$44,140.00	$44,542.00	$44,479.00


3	Under FIFO mehtod Story will pay the least tax as gross profit is lower under FIFO.

FIFO method Date Qty. Purchase(receipt) Rate Amount 300 27 $8,100 Sale Rate Qty. Amount(Rs.) Qty. Balance Rate Amount 300 27

LIFO method Sale Date Purchase(receipt) Rate Amount 300 27 $8,100 Qty. Rate Amount(Rs.) Qty. 01-Nov Qty. Balance Rate Amount

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Answer 2

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