Inventory data for Army & Navy Wear Co.are provided below.Sales for the month were 220 units sold for $12 each.The company maintains a periodic inventory system.
Required:
1.Determine the cost of goods sold and ending inventory for the month assuming the company uses the FIFO cost flow method.
2.Determine the cost of goods sold and ending inventory for the month assuming the company uses the LIFO cost flow method.
3.Determine the cost of goods sold and ending inventory for the month assuming the company uses the weighted average method.
4.Which method would you recommend that the company use if its objective is to minimize its income tax liability?

Question

Inventory data for Army & Navy Wear Co.are provided below.Sales for the month were 220 units sold for $12 each.The company maintains a periodic inventory system.
  Required:
1.Determine the cost of goods sold and ending inventory for the month assuming the company uses the FIFO cost flow method.
2.Determine the cost of goods sold and ending inventory for the month assuming the company uses the LIFO cost flow method.
3.Determine the cost of goods sold and ending inventory for the month assuming the company uses the weighted average method.
4.Which method would you recommend that the company use if its objective is to minimize its income tax liability?

Quizplus · Accepted Answer

The Answer of Inventory data for Army & Navy Wear Co.are provided below.Sales for the month were 220 units sold for $12 each.The company maintains a periodic inventory system.
  Required:
1.Determine the cost of goods sold and ending inventory for the month assuming the company uses the FIFO cost flow method.
2.Determine the cost of goods sold and ending inventory for the month assuming the company uses the LIFO cost flow method.
3.Determine the cost of goods sold and ending inventory for the month assuming the company uses the weighted average method.
4.Which method would you recommend that the company use if its objective is to minimize its income tax liability?

Inventory Data for Army & Navy Wear Co