TASK: The following transactions were incurred concerning a small lawn mower business during April:
April 1 Beginning Inventory 15 mowers @$110 per mower
April 5 Purchased 20 mowers @ $115 per mower
April 12 Sold 20 @ $160 per mower
April 20 Purchased 10 mowers @ $120 per mower
April 28 Sold 16 @ $160 per mower
Problem 1. Compute the ending inventory and cost of sales for April assuming the use of the periodic inventory system and the
a. Average Cost Method
b. FIFO Method
c. LIFO Method
Problem 2. Compute the ending inventory and cost of sales for April assuming the use of the perpetual inventory system and the
d. Average Cost Method
e. FIFO Method
f. LIFO Method
Problem 3: List an advantage and disadvantage of the periodic inventory system.
Problem 4: List an advantage and disadvantage of the perpetual inventory system.