Bugatti Inc. has the following inventory record of sales and purchases:

 

June 1 - Beginning Balance                                   100 units @ $10 each

 

June 6 – Sale of 10 Units @ $40 each

 

June 8 – Purchase                                       200 Units @ $15 each

 

June 16 – Sale of 120 Units @ $50 each

 

June 20 – Purchase                                     300 Units @ $20 each

 

June 23 – Sale of 100 Units @ 50 each

 

June 30 – Purchased                                                50 Units @ $25 each

 

1.    Using Periodic/LIFO accounting for inventory method - what is Bugatti’s cost of goods sold for the month of June?

 

2.    Using the Periodic/AVERAGE accounting for inventory method – what is Bugatti’s cost of goods sold for the month of June?

 

3.    Using the Perpetual/LIFO accounting for inventory method – what is Bugatti’s cost of goods sold for the month of June?

 

4.    Using the Perpetual/FIFO accounting for inventory method - what is Bugatti’s gross margin for the month of June?

 

5.    In a period of rising prices for Bugatti’s inventory which financial statement is more accurate [reflecting the reality of rising prices] when Bugatti adopts LIFO accounting principles -- Balance Sheet or Income Statement? – PLEASE STATE WHY.

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Status NEW Posted 11 Jul 2017 05:07 AM My Price 8.00

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