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: (Show your computations as per below format. )
(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: (Show your computations as per below format. )
(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: (Show your computations as per below format. )
(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