Norris Company Uses the Perpetual Inventory System and Had the Following

question 109

Essay

Norris Company uses the perpetual inventory system and had the following purchases and sales during March. 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.

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Definitions:

Direct Labor

The work of factory employees that can be directly traced to the individual units of product.

Factory Overhead Applied

The allocation of estimated manufacturing overhead costs to individual units of production based on a predetermined rate.

Underapplied

A situation where the actual costs are higher than the costs applied or allocated, typically in manufacturing overhead.

Job Order Cost Accounting

A system used to assign production costs to an individual product or batches of products, typically when each product's design is sufficiently unique.