Use a separate set of journal entries and t- accounts for

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Dugan Sales had the following transactions for jackets in 2013, its first year of operations:

Jan 20    Purchased 80 units @ 15   = $1200

Apr 21   Purchased 420 units @ 16   = 6,720

July 25      Purchased 250 units @ 20 = 5,000

Sept 19     Purchased 150 Units @22   = 3,300

During the year Dugan Sales sold 830 jackets for $40 each.

a. Compute the amount of ending inventory Dugan would report on the balance sheet, Assuming the following cost flow assumptions:

(1) FIFO (

2) LIFO and

(3) weighted Average

b. Record the above transactions in general journal form and post T-accounts using

(1) FIFO,

(2) LIFO

(3) weighed average.

Use a separate set of journal entries and T- accounts for each method. assume all transactions are cash transactions.

c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.

Reference no: EM13482873


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