Homework Help: finance

Posted by Monty Douglas on Friday, January 21, 2011 at 9:03pm.

Bristol Sales had the following transactions for DVD’s in 2012, its first year of operations.
Jan. 20 Purchased 75 units @ $17 = $1,275
Apr. 21 Purchased 450 units @ $19 = $8,550
July 25 Purchased 200 units @ $23 = $4,600
Sept. 19 Purchased 100 units @ $29 = $2,900
During the year, Bristol Sales sold 775 DVDs for $60 each.
a. Compute the amount of ending inventory Bristol 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 to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted 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.

No one has answered this question yet.

Answer this Question

Related Questions

accounting - Andy Wright, D.D.S., opened a dental practice on January 1, 2008. ...
accounting - Analyze and record, in the form of T Accounts, Mr. James' ...
Managerial Accounting - The following information was drawn from the year-end ...
Finance - ER Medical Supplies had sales of 2,000 units at $160 per unit last ...
accounting - In its first year of operations Tower Ltd purchased and paid for ...
Algebra - Suppose the estimated quadratic model Yt = 500 + 20 t - t2 is the best...
Finance - 17.Elegant Designers have generated sales of $625,000 for the current ...
Financial Accounting - Prepare the general journal entries for the following ...
accounting - how would the table of analysis be set up with these transactions: ...
principle of accounting - raper Consulting began operations and completed the ...

For Further Reading

First Name:
School Subject:
Answer: