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In: Accounting

DATE TRANSACTION # Units Price/Unit June 1 Beginning Inventory 50 $102 June 5 Sale 30 June...

DATE TRANSACTION # Units Price/Unit
June 1 Beginning Inventory 50 $102
June 5 Sale 30
June 10 Purchase 100 $110
June 17 Sale 60
June 30 Ending Inventory 60
July 2 Purchase 100 $108
July 8 Sale 110
July 14 Purchase 50 $112
July 18 Sale 40
July 22 Purchase 60 $117
July 26 Sale 50
July 31 Ending Inventory 70

1. Assuming perpetual inventory and LIFO, what is COGS in June?

2. Assuming perpetual inventory and average cost, what is COGS in July?

3. Assuming perpetual inventory and FIFO, what is the July 31 Ending inventory balance?

4. If your goal was to minimize the taxes you would pay for the month of July, which inventory valuation method would you use; average cost, FIFO, or LIFO?

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Expert Solution

ekkarill92 answered 2 years ago
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