Orion Iron Corp. tracks the number of units purchased and sold
throughout each year but applies...
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Accounting
Orion Iron Corp. tracks the number of units purchased and soldthroughout each year but applies its inventory costing method atthe end of the year, as if it uses a periodic inventory system.Assume its accounting records provided the following information atthe end of the annual accounting period, December 31.
Transactions
Units
Unit Cost
a. Inventory, Beginning
300
$
13
For the year:
b. Purchase, April 11
900
11
c. Purchase, June 1
800
14
d. Sale, May 1 (sold for $41 per unit)
300
e. Sale, July 3 (sold for $41 per unit)
620
f. Operating expenses (excluding income taxexpense), $18,100
Required:
1.
Calculate the number and cost of goods available for sale.
2.
Calculate the number of units in ending inventory.
3.
Compute the cost of ending inventory and cost of goods soldunder (a) FIFO, (b) LIFO, and (c)weighted average cost. (Do not round intermediatecalculations. Round your final answers to the nearest dollaramount.)
4.
Prepare an Income Statement that shows the FIFO method, LIFOmethod and weighted average method.
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