70.2K

Verified Solution

Link Copied!

Please explain your answer. Thank you.

Learning Objectives 2, 3 P6-28A Accounting for inventory using the perpetual inventory system- FIFO, LIFO, and weighted average Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. During the month, Fit Gym purchased and sold merchandise on account as follows: 2. Ending Merch. Inv., $990 Jan. 5 Purchase 156 crates @ $ 64 each 180 crates @ $ 100 each 13 Sale 18 Purchase 26 Sale 114 crates @ $ 75 each 150 crates @ $ 116 each Requirements 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 3. Prepare a perpetual inventory record, using the weighted average inventory cost- ing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.) 4. If the business wanted to pay the least amount of income taxes possible, which method would it choose

Answer & Explanation Solved by verified expert

See Answer