1) Bengals Company (the Company) has a December 31st fiscal year-end. The Company tracks inventory on a FIFO basis and reports inventory on a LIFO basis. After several years of industry growth, the economic impacts of the COVID-19 pandemic caused prices to fall industry wide. As of December 31, 2019, the Company had 360 units in inventory. The 2019 annual report contained the following inventory information:
2) Steelers Retailers, Inc. (the Company) is in its second year of operations. The Company uses the retail inventory method to estimate ending inventory and cost of goods sold. The following data has been summarized for 2020 (all amounts in $):
AutoSave OIF DEFA UA i-Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Share Comments X Times New... v v 10 AL AaBbcc AnBbceDEE BBCINE ABLE AX Aan A BI U d x x A AaBbCel Title A B Codi Aabbccdc Heading 3 Subtitle > LA Styles Pane Pasic Hearina 1 Heading 2 Marime Na Specing Suara Emp Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Check for Updates LE Problem 1 Bengals Company (the Company) has a December 31* fiscal year-end. The Company trucks inventory on a FIFO basis and reports inventory on LIFO basis. After several years of industry growth, the economic impacts of the COVD-19 pandemic used prices to fall industry wide. As of December 31, 2019, the Company had 360 units in inventory. The 2019 annual report contained the following inventory Information: Inventory at TITO $72.000 Less: Liro Reserve ($ 18,000) Inventory al LIFO $ 54.000 During 2020, Le Cuccupany had the following purchase Purchases Table Yalu Unil Total Parchase 1-5/14/20 1,700 $195.00 S314,500 Parehase 2-5/24/20 2,100 $182.50 S583,251 Purchase 3 - 9:2:20 2,700 $181.50 $490,050 Purchase 4-11/2020 400 $175.00 S 70,000 A physical count on December 31, 2020 indicated that the Company had 1,010 units in ending inventory. Bused on this information, calculate the following umaunts for fiscal yeur 2020: FIFO Amounts Fiscal Year 2020 Sales (in units): Gouds Available for Sale (units): Gouds Available for Sale (5): FIFO Ending Inventory (5): FIFO Cost of Goods Sold (S): Week: LIFO Amonts Fiscal Year 2020 Sales (in units): Goods Available for Sale (units) Goods Available for Sale (5): LIFO Ending Inventory (S): LIFO Cost of Goods Sold ($): Work: Page 1 of 3 806 words English (United States) 17 Focus + 122% AutoSave OIF DEFA UA i-Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Share Comments X Times New... v v 10 A 21 AaBbcc MBDCEDER ABONES AaBbCel ABONEC AX Aan BI U 46 x x PA A B Codi Aabbccdc Heading 3 Subtitle Pasic > LA Styles Pane Hacing 1 Heading 2 Name Title Na Specing Suara Emp Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Check for Updates Problem 1 (Continued) Engels Campiy Balnes LIFO) Reere at lecember 31, 202113 Inventory Profitat December 31, 2020: Adjustment: Assuming the Company accounted for its inventory moperly during the year, what entry did the Company make to djust from FIFO 10 LIFO at the color the year! Adjusting dournal Kadry Weighted Averag: Assume the Company is convalling to wcigled svircular, cuting beginning inventory along cost approximated FIFO inventory. what are 2020 Cacing Inventory od Cest of Goods Sold? Weighted Average Ending Inventory (5) Weighted Average Cost of Conds Nold (5) Method Selection Industry prices are expected to continue to decline for the next several years. Il you were managing the Company, which inventory costing method would you choose and why? Luyentury Culing Method: Page 2 of 3 606 wards English (United States) 1 Focus --+ 109% AutoSave OIF DEFA UA i-Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Share Comments X Times New... v v 10 A AL BONEC ABONEC AX Aan BI U 46 x x AaBbCc ABCDE Heading 1 Heading 2 AaBbCel Title A B Codi Aabbccdc Heading 3 Subtitle > LA Styles Pane Pasic Name Na Specing Suara Emp Check for Updates Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Probilem Standurile Inc. (the pay isinile sand years. The company exterilimentary melted L'estimering in and on and the following alles sur Bor 2000 (dlarens in Cos! Recall Jury: Inventory 269,800 360,000 Thunder 2,112,000 4072,500 Frcial-in 32,70 Purchase Returns 6,500 91,000 Ne Marsips 2948 Ne Makine 08.600 Amma Sallur 12.200 26,500 Shrinkage (Nonnal! 4,160 Sales 4,041,300 Sales Reums 81,080 _Hels 11,500 Employee des del destinare loyees receive 10% discoun Required: Estimate cuding investory and cost of gods sold using the Average Cost Method Use spuce or wack. Place answers in the black below. 40 Est. Enting Inry Care Cast-rall Percetare Est. En lavery Ext. Chut of Couds Soldest): Required: Estimate ending laveucary and cost of goods sold using the LIDO Retail Metbed. Use space for work. Place answers in the black below Ful. Kndia inertiary reall: Cretail Percentage: Est. Enting Intery cat Est. Cost of Goods Sold cost Page 3 of 3 606 wards English (United States 1 Focus 97%
