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Lewis Corporation

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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

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