Athletic World Athletic began January with merchandise inventory of 70crates of
ID: 2403502 • Letter: A
Question
Athletic World Athletic began January with merchandise inventory of 70crates of vitamins that cost a total of $ 4,550. During the? month, Athletic World purchased and sold merchandise on account as? follows:Requirement 1. Prepare a perpetual inventory? record, using the FIFO inventory costing? method, and determine the? company's cost of goods? sold, ending merchandise? inventory, and gross profit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological? order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual? record, calculate the quantity and total cost of merchandise inventory? purchased, sold, and on hand at the end of the period.? (Enter the oldest inventory layers? first.)
rement 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of good by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method Enter the tr all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purc Purchases Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Cost Quantity CostCost Date Quantity Cost Cost Quantity Cost Jan. 1 13 18 26 Enter any number in the edit fields and then click Check Answer Clear All parts remaining
Explanation / Answer
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 70 65 4550 5-Jan 130 76 9880 70 65 4550 130 76 9880 13-Jan 70 65 4550 60 76 4560 70 76 5320 18-Jan 150 83 12450 60 76 4560 150 83 12450 26-Jan 60 76 4560 100 83 8300 50 83 4150 TOTAL 280 22330 300 22730 50 4150 Sales (140*96+160*100) 29440 Less: COGS 22730 Gross profit 6710 COGS 22730 Ending Inventory 4150 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 70 65 4550 5-Jan 130 76 9880 70 65 4550 130 76 9880 13-Jan 130 76 9880 60 65 3900 10 65 650 18-Jan 150 83 12450 60 65 3900 150 83 12450 26-Jan 150 83 12450 10 65 650 50 65 3250 TOTAL 280 22330 300 23630 50 3250 Sales (140*96+160*100) 29440 Less: COGS 23630 Gross profit 5810 COGS 23630 Ending Inventory 3250 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 70 65 4550 5-Jan 130 76 9880 70 65 4550 130 76 9880 Average 200 72.15 14430 13-Jan 140 72.15 10101 60 72.15 4329 18-Jan 150 83 12450 60 72.15 4329 150 83 12450 Average 210 79.9 16779 26-Jan 160 79.9 12784 50 79.9 3995 TOTAL 280 22330 300 22885 50 3995 Sales (140*96+160*100) 29440 Less: COGS 22885 Gross profit 6555 COGS 22885 Ending Inventory 3995 Req 4: LIFO will provide least amount of income taxes
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.