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Problem 9-1 Fitzgibbons Company uses the perpetual inventory method. Fitzgibbons began the month of March with...

Problem 9-1

  • Fitzgibbons Company uses the perpetual inventory method.
  • Fitzgibbons began the month of March with 100 units of inventory, at a unit cost of $55.
  • On March 5, Fitzgibbons purchased 60 units at $60 each.
  • On March 12, they sold 60 units
  • On March 18, Fitzgibbons purchased 200 units at $65 each
  • On March 25, Fitzgibbons sold 210 units.
  • On March 29, Fitzgibbons purchased 40 units at $75 each.
  • All units were sold to customer for $100 each.
  1. Use the following format to set up this inventory costing problem, as shown in Video #2.

Inventory

Date

Units

Cost per Unit

Total Cost

Date

Units

Total Cost

Beg Balance

Units

Cost

Beginning Balance

+ Purchases

Goods Available for Sale

- Sold

Ending Balance

  

  1. Use the FIFO cost assumption to calculate the cost of goods sold for each sale, the total cost of goods sold for the month, and ending inventory.
  2. Use the LIFO cost assumption to calculate the cost of goods sold for each sale, the total cost of goods sold for the month, and ending inventory.

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