PART II Problem - Ex. 135 ( 40%) Romano Company uses the...

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Ex. 135 (   40% ) Romano Company uses the perpetual inventory system and had the following purchases and sales during March. Purchases Sales Units Unit Cost Units Selling Price/Unit 3/1 Beginning inventory100 $40 3/3 Purchase 60 $50 3/4 Sales 70 $80 3/10 Purchase 200 $55 3/16 Sales 80 $90 3/19 Purchase 40 $60 3/25 Sales 150 $90 Instructions Using the inventory and sales data above, calculate the value assigned to cost of goods sold in March and to the ending inventory at March 31 using (a) FIFO and (b) LIFO. a Solution 135 (20 min.) a) FIFO Date Purchases Sales Balance 3/1 (100 @ $40) $4,000 3/3 (60 @ $50) $3,000 (100 @ $40) (60 @ $50) $7,000 3/4 (70 @ $40) $2,800 (30 @ $40) (60 @ $50) $4,200 3/10 (200 @ $55) $11,000 (30 @ $40) (60 @ $50) (200 @ $55) $15,200 3/16 (30 @ $40) (10 @ $50) (50 @ $50) $3,700 (200 @ $55) $11,500 3/19 (40 @ $60) $2,400 (10 @ $50) (200 @ $55) (40 @ $60) $13,900
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3/25 (10 @ $50) (60 @ $55) (140 @ $55) $8,200 (40 @ $60) $5,700 March cost of goods sold = $14,700 ($2,800 + $3,700 + $8,200)
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This note was uploaded on 02/02/2012 for the course ACCO 3350 taught by Professor Alvarez during the Spring '11 term at American International.

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PART II Problem - Ex. 135 ( 40%) Romano Company uses the...

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