Reference no: EM132538396

PERPETUAL INVENTORY PROBLEM

SophCO Inc. is a distributor of linseed oil which is used in the manufacture of paint. The company buys linseed oil in bulk from a number of different linseed crushing plants. At the beginning of month of September the company had 25,000 gallons of linseed oil stored in its tank farm. The linseed oil was purchased from one crushing plant at a cost of $3.00. During the month of September the company purchased additional linseed oil and sold linseed oil as follows.

1. 9/3/XX purchased 10,000 gallons of linseed oil at $3.25 per gallon.
2. 9/8/XX purchased 15,000 gallons of linseed oil at $3.50 per gallon
3. 9/10/XX purchased 5,000 gallons of linseed oil at $3.60 per gallon.
4. 9/11/XX sold 22,000 gallons to a paint manufacture for $5.00 per gallon.
5. 9/12/XX purchased 20,000 gallons of linseed oil at $3.75 per gallon.
6. 9/22/XX purchased 5,000 gallons of linseed oil at $3.80 per gallon
7. 9/30/XX sold 28,000 gallons of linseed oil for $5.20.

Required:

Question a. Complete the perpetual inventory record (provided) for the above transactions using FIFO

Question b. Make the required journal entry on 9/8/XX for the FIFO method.

Question c. Make the required journal entry on 9/11/XX for the FIFO method.

Question d. Complete the perpetual inventory record (provided) for the above transactions using LIFO