1. The raw materials account of Franklin Inc. reflected the following changes during April:
|
Opening balance |
500 units @ $10 |
|
|
Received |
200 units @ $12 |
|
|
Issued |
400 units |
|
|
Issued |
100 units |
|
|
Received |
300 units @ $15 |
Other costs during the month included the following:
|
Direct labor |
$8,000 |
|
Factory overhead |
6,000 |
One thousand units of product were completed, of which 800 were sold and 200 remained on hand. There was no beginning inventory in finished goods. The company uses a perpetual inventory system.
|
a. |
Using FIFO, what are the end of month balances for each of the following accounts? |
|
|
(1) |
Raw Materials Inventory |
|
|
(2) |
Finished Goods Inventory |
|
|
(3) |
Cost of Goods Sold |
|
|
b. |
Using LIFO, what are the end of month balances for each of the following accounts? |
|
|
(1) |
Raw Materials Inventory |
|
|
(2) |
Finished Goods Inventory |
|
|
(3) |
Cost of Goods Sold |
|