Fly buy frisbee sells a wide variety of frisbees and uses a perpetual inventory system. On June 1, fly-buy frisbee had five fast flying frisbees on hand at a unit price of$105. During June and July , the company had the following purchases and sales for this frisbee (all in cash): June 4- SALE- 2 unit price $210 , June 18-PURCHASE-5, unit price $115, June 30-SALE-6 unit price $235, July 5-PURCHASED- 5 unit price $120, July 12-SALE-3unit price $255,July 25-SALE-2 unit price $255
Question: a) determine the cost of goods sold and ending inventory under a perpetual inventory system using 1)FIFO 2)Average (round average cost 2 decimal places) 2) calculate gross profit using 1)FIFO 2) average and question 3) what impact, if any does the choice of cost formula have on cash flow?,
Pm 2: copperhead company has provided you with the following information regarding its inventory of copper for September and October. Copperhead uses a perpetual inventory system
Copper inventory (in tonnes): sept 2,500, October 2,000
Cost per ton: sept-$505 oct- $520
NRV per ton: sept $540 oct $520
A) Calculate the cost, new realizable value, and the amount to be reported on the balance sheet for copperheads inventory at 1) September 30th and 2) Oct 31
B) Prepare any journal entries required to record the LCNRV of the copper inventory at 1) September 30 and 2) October 31