(Answered) Problem - the gigi company has the following transactions

Accounting

Problem - The Gigi Company has the following transactions during the months of April and May:

Date	Transaction	Units	Cost/Unit
April 1	Balance	400
April 17	Purchase	200	$5.50
April 25	Sale	150
April 25	Purchase	100	$5.75
May 5	Purchase	250	$5.50
May 18	Sale	300
May 22	Sale	50

The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.

Required:

1. Compute the costs of goods sold for each month and the inventories at the end of each month for the following alternatives:

a. FIFO periodic

b. FIFO perpetual

c. LIFO periodic

d. LIFO perpetual

e. Weighted average (round unit costs to 2 decimal places)

f. Moving average (round unit costs to 2 decimal places)

2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results.

3. If Gigi Company uses IFRS, which of the previous alternatives would be acceptable, and why?

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