FIFO METHOD On 1 August L&T Co. had a balance in inventory of 120 units at AED14.25 per unit. The following transactions occurred during the month Augs 4 Purchased 155 units at AED15 per unit Augs 5 Retumed 10 units from August 4 purchases Augs 6 Sold 175 units Augs8 40 of the units sold on Augs 6 were returned Augs10 Purchased 135 units al AED 17 per unit Augs 12 Returned 25 of the units that was purchased on Augs 10 a, Prepare the inventory valuation report using FIFO (First In-First Out) b. Compute the total cost of goods sold and ending inventory on Augs. 31.

FIFO METHOD On 1 August L&T Co. had a balance in inventory of 120 units at AED14.25 per unit. The following transactions occurred during the month Augs 4 Purchased 155 units at AED15 per unit Augs 5 Retumed 10 units from August 4 purchases Augs 6 Sold 175 units Augs8 40 of the units sold on Augs 6 were returned Augs10 Purchased 135 units al AED 17 per unit Augs 12 Returned 25 of the units that was purchased on Augs 10 a, Prepare the inventory valuation report using FIFO (First In-First Out) b. Compute the total cost of goods sold and ending inventory on Augs. 31.

Name: FIFO METHODOn 1 August L&T Co. had a balance in inventory of 120 unit
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Description: FIFO METHODOn 1 August L&T Co. had a balance in inventory of 120 units at AED14.25 per unit. The following transactions occurred during the month.Augs 4Purchased 155 units at AED15 per unitAugs 5Retumed 10 units from August 4 purchasesAugs 6Sold 175

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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O Unit O Acc G the G Whe G A me O Que. O Chap GA me acco Accc O Ac Accc acco om etakeAssignmeniMam.do?nvoker 8takeAssignmentSessiont ocator-8inprogr Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending inventory shows 700 units. Compute the cost of goods sold and the ending inventory for the company using each of the following methods. Also determine the gross margin if the total sales revenue is $43,000. a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. Cost of goods sold 24 Ending inventory %$4 Gross profit %24 b. First-in, first-out (FIFO) Cost of goods…
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