The Geewhiz Company Uses the Perpetual Inventory System

question 122

Essay

The Geewhiz Company uses the perpetual inventory system.The Geewhiz Company has the following data available for the month of January:
Determine the cost of the ending inventory using the following methods:
a.FIFO
b.LIFO
c.Moving-average (Round per unit costs to four decimal places and all other dollar amounts to two decimal places.)

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Definitions:

Capital Account

An account on a national or international level showing the net change in asset ownership for a country, or on a company level, it represents the funds contributed by owners plus retained earnings.

Closed

Closed refers to the status of an account, position, or transaction that has been settled or concluded, with no further action or activity pending.

Utilities Expense

Costs incurred for essential services such as electricity, water, and gas used by a business during an accounting period.

Prepaid Insurance

Payments made in advance for insurance coverage, which is then expensed over the period the coverage is applicable.