value: 20.00 points Scoresby Inc. tracks the number of units purchased and sold
ID: 2393770 • Letter: V
Question
value: 20.00 points Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost 4,000 $18 a. Inventory, Beginning For the vear b. Purchase, March 5 c. Purchase, September 19 d. Sale, April 15 (sold for $63 per unit) e. Sale, October 31 (sold for $66 per unit) f. Operating expenses (excluding income tax expense), $595,000 19 21 10,000 6,000 4,100 9,000 Required: 1. Calculate the number and cost of goods available for sale Number of Goods Available for Sale 20,000 units Cost of Goods Available for Sale $388,000 2. Calculate the number of units in ending inventory Ending Inventory unitsExplanation / Answer
Req 1: Units and cost of Goods available for sale RECIEPTS DATE UNITS RATE AMOUNT $ 1-Jan 4000 18 72000 Purchasse 5-Mar 10000 19 190000 19-Sep 6000 21 126000 TOTAL 20000 388000 Req 2: Ending Inventory units: 6900 Units Req 3 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 4000 18 72000 4000 18 72000 Purchasse 5-Mar 10000 19 190000 9100 19 172900 900 19 17100 19-Sep 6000 21 126000 6000 21 126000 TOTAL 20000 388000 13100 244900 6900 143100 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 4000 18 72000 4000 18 72000 Purchasse 5-Mar 10000 19 190000 7100 19 134900 2900 19 55100 19-Sep 6000 21 126000 6000 21 126000 TOTAL 20000 388000 13100 260900 6900 127100 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 4000 18 72000 Purchasse 5-Mar 10000 19 190000 19-Sep 6000 21 126000 TOTAL 20000 19.4 388000 13100 19.4 254140 6900 19.4 133860 Ending Inv. COGS FIFO 143100 244900 LIFO 127100 260900 Average 133860 254140 Req 4: FIFO LIFO Average Sales revennue 852300 852300 852300 Less: COGS 244900 260900 254140 Gross margin 607400 591400 598160 Less: Operating expense 595000 595000 595000 Net Income 12400 -3600 3160 Req 5: LIFO minimize incocme tax
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