the purchase and issues of rubber gaskets (store ledger #11216) as shown in the records of Lowe Corporation for the month of November follow:
Nov. 1 Beginning balance units: 30,000 Unit price: $3.00
Nov. 4 Received Rec. Report No. 112 10,000 3.10
Nov. 5 Issued, Mat. Req. No. 49 30,000
Nov. 8 received, Rec. Report No.113 50,000 3.30
Nov. 15 Issued, Mat. Req. No. 50 20,000
Nov. 22 Received, Rec. report No. 114 25,000 3.50
Nov. 28 Issued, Mat. Req. No. 51 30,000
1) Complete a stores ledger card ( the "on order" columns should be omitted) for each of the following inventory costing methods, using a perpetual inventory system:
a) FIFO
b) LIFO
c) moving average (carrying unit prices to five decimal places)
2) for each method, prepare a schedule that shows the total cost of materials transferred to Work in Progress and the cost of the ending inventory
3) If prices continue to increase, would you favor Fifo or LIFO? explain.
4) When prices continue to rise, what is the effect of FIFO vs. LIFO on the inventory balance reported in the balance sheet? Discuss