Lewis Corp 6-2

Topics: FIFO and LIFO accounting, Inventory, Generally Accepted Accounting Principles Pages: 4 (733 words) Published: August 22, 2010

6-2

Lewis Corporation*

Lewis Corporation had traditionally used the FIFO method of inventory valuation. You are given the information shown in exhibit 1 on transactions during the year affecting Lewis’s inventory account. (The purchases are in sequence during the year. The company uses a periodic inventory method).

Exhibit 1 Inventory Transactions 2000-2002---------------------------------------------------                                                     2000
Beginning Balance                                        1,840 Cartons @ $20.00 Purchases                                           600 cartons @    20.25                                           800 cartons @    21.00                                          &nbs p;                                                400 cartons @    21.25                                          &nbs p;                                                200 cartons @    21.50                                          &nbs p;                                                  Sales                                          &nbs p;                                    2,820 cartons @   34.00

2001
Beginning Balance                                          &nbs p;              1,020 cartons Purchases                                          &nbs p;                               700 cartons @ 21.50                                          &nbs p;                                                 700 cartons @ 21.50                                          &nbs p;                                                 700 cartons @ 22.00                                          &nbs p;                                              1,000 cartons @ 22.25

Sales                                          &nbs p;                                    3,080 cartons @ 35.75

2002
Beginning Balance                                        &nb sp;              1,040 cartons Purchases...
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