125% T View Zoom Add Category Insert Table Chart Text Shape Media Comment Collaborate Format Organize FOB v Inventory Valuation See 8-6 ABC, Inc.'s inventory balance on December 31, year 2, was $355,000 before considering the following transactions: Goods shipped to ABC f.o.b. shipping point on December 23, year 2, were received on January 4, year 3. The invoice cost was $10,000. Goods shipped to ABC f.o.b. destination on December 27, year 2, were received on January 5, year 3. The invoice cost was $18,000. Goods shipped from ABC to a customer f.o.b. shipping point on December 28, year 2, were received by the customer on January 3, year 3. The sales price was $153,000 and the merchandise cost $73,800. Goods shipped from ABC to a customer f.o.b. destination on December 27, year 2, were received by the customer on December 29, year 2. The sales price was $22,500 and the merchandise cost $8,500. Goods shipped from ABC to a customer f.o.b. shipping point on December 28, year 2, were received by the customer on January 4, year 3. The sales price was $47,500 and the merchandise cost $19,500. Required: Determine the correct inventory amount to be reported in the year 2 balance sheet. Inventory balance before additional transactions Add: 2 3 Correct inventory balanceInventory Valuation I l l l I l l l I l I I * ABC Co. provides the following information related to its merchandise inventory during the month of June year 1. e June. 1 Inventory on hand2,800 units; cost $3.15 each. 7 8 Purchased 5,500 units for $3.25 each. 7 14 Sold 5,200 units for $10.50 each. 18 Purchased 6,200 units for $3.35 each. 25 Sold 3,600 units for $11.20 each. e 28 Purchased 3,200 units for $3.50 each. : Required: Using calculations based on a periodic Inventory system, determine the ending inventory total units, the Inventory balance to be reported In the June 30, year * 1, balance sheet and the cost of goods sold It would report In the June year 1 Income statement using each of the following cost flow methods: e First-in, first-out (FIFO) c Last-in, first-out (LIFO) _ Average cost FIFO Available for sale Cost of goods sold Ending inventory Date Units Price Cost Units Price Cost Units Price Cost 1May S - S 5 3M3}: 5 . S - $ - S - $ 18-May 5 - S - S 28-May S - S - S > S - S - S LIFO Available for sale Cost of goods sold Ending inventory Date Units Price Cost Units Price Cost Units Price Cost 1-May S - S - $ 8-May S - S - S 18May S - 5 . 5 28May_ s - S 5 S - S - S S S - $ $ - S - $ 5 S - 5 Average Available for sale Cost of goods sold Ending inventory Date Units Price Cost Units Price Cost Units Price Cost 1May S - S - S 8-May S - S - $ 18-May 5 - $ - S ZSMay s - S S - $ - S - S A , , H