123 A Part 1 B C D E F G H ] K L M N Answer all the questions in the spaces provided (Yellow cells) Bobby 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 account period, December 31. 4 5 Date Transaction 6 1/Jan/20 Beginning Inventory 7 14/Feb/20 Purchase 8 20/Feb/20 Return items purchased on Feb 14 9 15/Mar/20 Sale 10 1/Jul/20 Purchase 11 12 1/Oct/20 31/Oct/20 Purchase Sale Units Unit Cost Unit Price 1,200 $ 19.00 2,500 $ 20.00 100 1,600 $ 31.00 1,000 $ 1,100 $ 2,600 23.00 21.00 $ 30.00 13 14 Required: 15 1 Complete the body of the cost of goods sold calculation under both the FIFO and weighted average costing methods. 16 17 [6 Marks] 18 19 20 21 22 FIFO Goods Available for Sale Cost of Goods Sold Ending Inventory Units Dollar Amount 23 24 25 [3 Marks] Weighted average Average Cost per Unit Units Unit Cost Dollar Amount Cost of Goods Sold Ending Inventory Complete the body of the following income statement (partial) under both the FIFO and weighted average costing method 26 27 28 29 30 31 32 33 34 2 25 12 Markel INSTRUCTION Part 1 Part 2 Part 3 Part 4 (+) o P Q R S T G H I ] K L M N Q R S T 34 2 A D E B F Complete the body of the following income statement (partial) under both the FIFO and weighted average costing method 35 [2 Marks] 36 Income Statement (Partial) 37 Income Statement (Partial) FIFO Weighted Average 38 39 40 41 42 3 43 [3 Marks] Sales Revenue Cost of Goods Sold Gross Profit Assume that Bobby Inc. failed to apply the LC&NRV to the ending inventory. Given that the net realizable value per unit at Year-end is $20, prepare the journal entry to restate the financial statements to incorporate the LC&NRV 44 45 FIFO 46 47 Date General Journal Debit Credit 48 31/Dec/20 49 50 51 52 Weighted average 53 54 55 Date 31/Dec/20 General Journal Debit Credit 56 57 58 59 4 60 [1 Mark] 61 62 63 64 65 66 Assume that Bobby Inc. applies its inventory costing method perpetually at the time of each sale. Complete the body of the following income statement (partial) under the FIFO method Income Statement (Partial) Sales Revenue Cost of Goods Sold Gross Profit Perpetual FIFO 67 68 INSTRUCTION Part 1 Part 2 Part 3 Part 4 +