Grayson Company Sells Many Products

question 125

Essay

Grayson Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Grayson Company uses the perpetual inventory system. Instructions
(a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations)
(b) Using the FIFO assumption, calculate the value of ending inventory for March.
(c) Using the moving average cost method, calculate the amount assigned to the inventory on hand on March 31. (Show computations)
(d) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31. (Show computations)
(e) Using the LIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations)

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Definitions:

Assignment

The transfer of rights or responsibilities from one party to another, often seen in the context of contracts.

Delegation

The process of assigning responsibility and authority from one person or group to another person or group.

Personal

Relating to or affecting a particular person rather than anyone else; of or concerned with one's private life, relationships, and emotions rather than matters connected with one's public or professional career.

Qualified

Refers to meeting the necessary standards or requirements for a particular position, status, or activity.