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1. Assume the company uses the perpetual FIFO cost flow assumption. What is the ending inventory...

1. Assume the company uses the perpetual FIFO cost flow assumption. What is the ending inventory balance and cost of goods sold? You must show your work.

Stratosphere Communications has the following inventory transactions in its first year.

  • On Jan. 6, purchased 1,000 units at $3
  • On Mar. 23, purchased 2,000 units at $4
  • On Jun. 27, sold 1,500 units at $9
  • On Oct. 1, purchased 3,000 units at $5
  • On Dec. 15, sold 2,500 units at $11

2. Assume the company uses the periodic LIFO cost flow assumption. What is the ending inventory balance and cost of goods sold? You must show your work.

Stratosphere Communications has the following inventory transactions in its first year.

  • On Jan. 6, purchased 1,000 units at $3
  • On Mar. 23, purchased 2,000 units at $4
  • On Jun. 27, sold 1,500 units at $9
  • On Oct. 1, purchased 3,000 units at $5
  • On Dec. 15, sold 2,500 units at $11

3. Assume the company uses the perpetual LIFO cost flow assumption. What is the ending inventory balance and cost of goods sold? You must show your work.

Stratosphere Communications has the following inventory transactions in its first year.

  • On Jan. 6, purchased 1,000 units at $3
  • On Mar. 23, purchased 2,000 units at $4
  • On Jun. 27, sold 1,500 units at $9
  • On Oct. 1, purchased 3,000 units at $5
  • On Dec. 15, sold 2,500 units at $11

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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