From the excel document, the inventory records for jippy juice company rasperry juice cans
|
|
|
Number of Units |
Cost per unit |
total cost |
| Dec |
1 |
Beginning inventory |
200 |
2.025 |
405 |
|
5 |
Purchase |
500 |
2.03 |
1015 |
|
8 |
Purchase |
1000 |
2.1 |
2100 |
|
13 |
Sale |
300 |
|
|
|
23 |
Purchase |
400 |
2.12 |
848 |
|
30 |
Sale |
600 |
|
|
Q1. Assuming a periodic inventory system, determine the cost of the ending inventory and the cost of goods sold using (i) FIFO (ii) Weighted average cost and (III) LIFO methods
Q2. Assuming a perpetual inventory system, determine the cost of the ending inventory and the cost of goods sold using (I) weighted average cost and (II) LIFO
Q3. Which method results in the highest cost of goods sold? Why?
Q4. Which method results in the highest ending inventory? Why?
Q5. Which method results in the highest cash flow? Why
Q6. Assume prices are expected to increase in the future. Which method would you recommend for Jippy Juice Company? Explain why.