Answer to Question #58500 in Management for DXX

Question

Prepare the appropriate journal entries to record the following transactions assuming that the LIFO cost flow assumption is used. Feathers Company uses perpetual inventory accounting. Prepare the Inventory Subsidiary Ledger for the same transactions, also using LIFO AND FIFO. What was Feathers' gross margin for the period, using LIFO AND FIFO?

April 1. Feathers Company purchased 100 units at $10.00 per unit. Terms were net 30.
April 10. Sold 80 units to Rambo Co, sales price per unit $12. Terms of the sale were 2/10, n/30.
April 18. Received payment from Rambo Co. within the discount period.
April 20. Purchased 210 units at $8.00 per unit. Terms were net 30.
April 25. Sold 150 units to Tarzan Co., sales price per unit $11. Terms of the sale were 2/10, n/45.
April 28. Purchased 80 units at $9.00 per unit. Terms were net 30.
April 30. Feathers Co. paid the account payable from April 1.