Vaughn company sells fishing poles for 35$ each and uses the perpetual inventory

Question

Vaughn company sells fishing poles for 35$ each and uses the perpetual inventory system. The following information is available for the month of May: May 1 beginning inventory 20 units @ 5$: May 10 purchase 20 units @ 8$: May 15 sales 25 units: May 18 Purchase 10 units@ 9$: May 21 23 units A) using LIFO prepare the journal entries 1A) What is the ending inventory on May 30th in units and Dollars? B) Using FIFO: What is the inventory on May 30th in units and dollars? 1B) what is the Gross profit?

Explanation / Answer

a)under LIFO for MAy 15th 25 units sale 20 units from may 10 and 5 units from may 1st so after may15th inventory = 15--may 1st,0---may 10th after may 21 sales = 10 from may 18th and 13 from beginning so after may 21st inventory = 2 from may1st ending inventory = 2(5) = $10 b) using fifo may15th --25 units sale 20 from may 1 and 5 from may10..so 15 from may 10 remaining may 21 sales 15 from from may10th and 8 from may 18th...so 2 from may 18th remaining so final inventory = 2 from may 18th gross profit = (25+23)*35 - 20*5 - 20*8 - 8*9 =1812

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.