Inventory Flow Assumptions The Perpetual Inventory Records of Handy Hardware Show 150 Units

question 142

Essay

Inventory flow assumptions
The perpetual inventory records of Handy Hardware show 150 units of a particular product on hand,acquired at the following dates and costs: On June 3,Handy sold 120 units of this product.
Instructions: Prepare a journal entry to record the cost of goods sold relating to the sale on June 3,assuming that Handy uses: (Show your computations as per below format. )
(a)A LIFO flow assumption.
(b)A FIFO flow assumption.
(c)The average cost (or moving average)flow assumption.

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Definitions:

Interest

The fee for borrowing funds or the reward for lending them, often stated as a percentage of the initial sum.

Furniture

Movable objects intended to support various human activities such as seating, eating, and sleeping.

Focal Date

A specific date used as a reference point for financial calculations, such as the valuation of an asset or the determination of an interest period.

Loan Date

The date on which a loan agreement is signed and the funds are disbursed to the borrower.