for puja
Tony Merchandise Company has the following information for the month of February:
|
Feb. 2 |
Beginning inventory |
20 |
units |
@ |
$12 |
per unit |
|
Feb. 5 |
Purchase |
20 |
units |
@ |
$16 |
per unit |
|
Feb. 8 |
Sale |
12 |
units |
|
|
|
|
Feb. 21 |
Purchase |
12 |
units |
@ |
$18 |
per unit |
|
Feb. 25 |
Sale |
14 |
units |
|
|
|
Answer the following questions for Tony Merchandise Company:
1. Calculate the dollar ending inventory if first in, first out (FIFO) is used.
2. Calculate the cost of goods sold if LIFO is used.
3. Calculate the dollar ending inventory if weighted average is used.
4. According to the generally accepted accounting principles (GAAP), discuss the objectives of inventory costing.
5. Discuss the consequences of selecting one method instead of others.
For assistance with your assignment, please use your text, Web resources, and all course materials.
The following grading criteria will be used:
|
Grading Guidelines |
|
|
30% |
· Calculate the dollar ending inventory if FIFO is used. |
|
30% |
· Calculate the cost of goods sold if LIFO is used. |
|
20% |
· Calculate the dollar ending inventory if weighted average is used. |
|
20% |
· According to the GAAP, discuss the objectives of inventory costing. · Discuss the consequences of selecting one method instead of others. |