Question -
Bugatti Inc. has the following inventory record of sales and purchases:
June 1 - Beginning Balance 100 units @ $10 each
June 6 - Sale of 10 Units @ $40 each
June 8 - Purchase 200 Units @ $15 each
June 16 - Sale of 120 Units @ $50 each
June 20 - Purchase 300 Units @ $20 each
June 23 - Sale of 100 Units @ 50 each
June 30 - Purchased 50 Units @ $25 each
1. Using Periodic/LIFO accounting for inventory method - what is Bugatti's cost of goods sold for the month of June?
2. Using the Periodic/AVERAGE accounting for inventory method - what is Bugatti's cost of goods sold for the month of June?
3. Using the Perpetual/LIFO accounting for inventory method - what is Bugatti's cost of goods sold for the month of June?
4. Using the Perpetual/FIFO accounting for inventory method - what is Bugatti's gross margin for the month of June?
5. In a period of rising prices for Bugatti's inventory which financial statement is more accurate [reflecting the reality of rising prices] when Bugatti adopts LIFO accounting principles -- Balance Sheet or Income Statement?