Inventory flow assumptions
The perpetual inventory records of Handy Hardware show 150 units of a particular product on hand, acquired at the following dates and costs:

On June 3, Handy sold 120 units of this product.
Instructions: Prepare a journal entry to record the cost of goods sold relating to the sale on June 3, assuming that Handy uses:
(a) A LIFO flow assumption.
(b) A FIFO flow assumption.
(c) The average cost (or moving average) flow assumption.

Question

Inventory flow assumptions
The perpetual inventory records of Handy Hardware show 150 units of a particular product on hand, acquired at the following dates and costs:
 
On June 3, Handy sold 120 units of this product.
Instructions: Prepare a journal entry to record the cost of goods sold relating to the sale on June 3, assuming that Handy uses:
(a) A LIFO flow assumption.
(b) A FIFO flow assumption.
(c) The average cost (or moving average) flow assumption.

Quizplus · Accepted Answer

The Answer of Inventory flow assumptions
The perpetual inventory records of Handy Hardware show 150 units of a particular product on hand, acquired at the following dates and costs:
 
On June 3, Handy sold 120 units of this product.
Instructions: Prepare a journal entry to record the cost of goods sold relating to the sale on June 3, assuming that Handy uses:
(a) A LIFO flow assumption.
(b) A FIFO flow assumption.
(c) The average cost (or moving average) flow assumption.

Inventory Flow Assumptions The Perpetual Inventory Records of Handy Hardware Show 150 Units