AC301_Unit 2_Finley_Joey homework.....work

AC301_Unit 2_Finley_Joey homework.....work - And why? The...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
E8-8 Alternative Inventory Methods The perpetual inventory records of the Park Company indicate the following transactions in the month of June: E8-8 Solution: Response Details: FIFO LIFO Cost of goods sold June 6 Sales - 300 units (200 x $3.20) + (100 x $3.50) $990 (300 x $3.65) $1,095 June 21 Sales - 200 units (100 x $3.50) + (100 x $3.60) $710 200 x $3.60 $720 June 27 Sales - 150 units (150 x $3.60) $540 (50 x $3.60) + (100 x $3.50) $530 Total $2,240 $2,345 Average Cost of goods available Inventory, June 1 200 units x $3.20 $640 Purchases - June 3 200 units x $3.50 $700 Purchases - June 17 250 units x $3.60 $900 Purchases - June 24 300 units x $3.65 $1,095 Total Cost of goods available $3,335 Average cost per unit $3,335 / 950 $3.51 Cost of goods sold 650 x $3.51 $2,282 4. If Park Company uses IFRS, which of the previous alternatives would be acceptable.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: And why? The IASB, as part of its Improvements Project, determined that the goals of achieving convergence among accounting standards and of promoting uniformity across entities reporting under IFRS would be served by eliminating the formerly "allowed alternative" of costing inventories by means of the last-in, first-out (LIFO) method. This has left the first-in, first-out (FIFO) and the weighted-average methods as the only two acceptable costing techniques under IFRS E8-12 Dollar-Value LIFO On January 1, 2009, the Sato Company adopted the dollar-value LIFO method of inventory costing. The companys ending inventory records appear as follow....
View Full Document

Ask a homework question - tutors are online