Lewis Corporation
LEWIS CORPORATION Lewis Corporation had traditionally used the FIFO method of inventory valuation. You are given the information shown in exhibit 1 on transaction during the year affecting Lewis inventory account. (The purchases are in the sequence during the year. The company uses a periodic inventory method). EXHIBIT 1 Inventory Transaction 2005 – 20072005Beginning balance 1,840 cartoons @ $ 20.00Purchases 600 cartoons @ $ 20.25 800 cartoons @ $ 21.00 400 cartoons @ $ 21.25 200 cartoons @ $ 21.50Sales 2,820 cartoons @ $ 34.002006Beginning balance 1,020 cartoons Purchases 700 cartoons @ $ 21.50
700 cartoons @ $ 21.50 700 cartoons @ $ 22.00 1,000 cartoons @ $ 22.25Sales 3,080 cartoons @ $ 35.752007Beginning balance 1,040 cartoons Purchases 1,000 cartoons @ $ 22.50 700 cartoons @ $ 22.75