Beginning Inventory, Purchases and Sales Data for Hammers Are as Follows

question 15

Essay

Beginning inventory, purchases and sales data for hammers are as follows:
Assuming the business maintains a perpetual inventory system, complete the inventory cards and calculate the cost of merchandise sold and ending inventory under the following assumptions:
a. First-in, first-out
b. Last-in, first-out

---

Definitions:

Plant Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Land Improvements

Expenses for enhancements made to a parcel of land to make it more usable, which do not directly include the land itself but, for example, landscaping, parking lots, and fences.

Depreciated

Refers to the reduction in value of an asset over time due to wear and tear or obsolescence.

Useful Life

The estimated period over which an asset is expected to be useful in the operations of a business before it is fully depreciated.