*p6-9b reliable camera mart sells a wide variety of special digital cameras and uses a perpetualinventory system. on may 1, 2008, reliable had five model 25 digital cameras on hand at a unit costof $95. during may and june, the company had the following purchases and sales for this camera (all for cash): see image instructions(a) determine the cost of goods sold and ending inventory under a perpetual inventory system using(1) fifo and (2) average cost.(b) prepare all required journal entries for may using (1) fifo and (2) average cost.(c) calculate gross profit using (1) fifo and (2) average cost.(d) which cost flow assumption produces the higher cash flow?(e) what factors should the owner of reliable camera mart consider when choosing a cost flowassumption?
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Category: science | Author: Sarah Aksinia
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