...available for sale.,? "Parker company uses a perptual inventory system. It entered into the following calendar-year 2005 purchases and sales transactions: compute cost of goods available for sale and the number of units available for sale."
compute the number of units in ending inventory compute the cost assigned to ending inventory using (A) FIFO, (B) LIFO, (C) specific indentification Note: The units sold consist of 500 Units from beginning inventory and 100 units from the March 13 purchase) and D- weighted average.
Compute the gross profit earned by the company for each of the four costing methods in part 3.
If the company's manager earns a bonus based on a percent of gross profit, which method of inventory costing will the manager likly prefer?
Jan, 1 beginning inventory....600 units @ $44/unit
2/10 purchase.......200 units @ $40/unit
3/13 Purchase.......100 Units @ /unit
3/15 Sales...........400 units @ 75/unit
8/21 purchase 160 units @ 60/unit
9/5 purchase 280 units @ 48/unit sale