13 1 109% ? Q- Search in Document Tables Review Charts SmartArt Paragraph Styles Insert Thames A Home Layout Document Elements Font Times New Roman - 12 - A- A- Ab BI U A A AA A B - A = =) IL AaBbCcDdEe AA - 2 List Paragraph Text Boy Shape Picture Themes . 1.1...2...1...3.....4.............6 Ranger Co. had the following layers of inventory at the start of the year 2020 200 units purchased at $30 each on 11/1/19, 300 units purchased at $33 each on 11/20/19, 400 units purchased at $37 each on 12/15/19, 200 units purchased at $39 each on 12/31/19. During 2020, Ranger Co. purchased an additional 6,300 units at the prevailing price of $43 which equaled the year-end replacement cost. If Ranger sold 7,000 units, determine the inventory profits resulting from LIFO liquidation ignoring tax effects. Estimating LIFO reserve A company records its inventory ledger using a FIFO cost assumption. At 1/1/20, balance of inventory according to this measure is $100,000, while its ending inventory is recorded at a balance of S170,000 on 12/31/20. Because the company uses LIFO to determine taxable income, it estimated that its inventory balances under LIFO would be $60,000 and 890,000 1. If COGS, using a FIFO cost assumption, was $400,000 for the year 2020, determine the amount of COGS to be reported using a LIFO cost assumption 2. Have inventory costs increased or decreased over the course of 2020? 3. What impact would utilizing LIFO have on the inventory turnover ratio? Lower of cost or NRV NRV Inventory Cost (assigned type by cost method) A $2,000 $1,000 C $3,000 Total Estimated selling price $7,000 $1,200 $2,900 Estimated costs to dispose 5400 S300 S500 1. Determine the amount of write-down provided the firm judges by the entire inventory. 2. Determine the amount of the write-down provided the firm judges by cach inventory - type. 3. Provide journal entries for the write-downs assessed in #1 and #2 using an indirect and direct method utilizing a perpetual inventory system. C O Print Layout View Sec 1 Pages: 1 of 1 Words: 199 of 284 ELE 109% 13 1 109% ? Q- Search in Document Tables Review Charts SmartArt Paragraph Styles Insert Thames A Home Layout Document Elements Font Times New Roman - 12 - A- A- Ab BI U A A AA A B - A = =) IL AaBbCcDdEe AA - 2 List Paragraph Text Boy Shape Picture Themes . 1.1...2...1...3.....4.............6 Ranger Co. had the following layers of inventory at the start of the year 2020 200 units purchased at $30 each on 11/1/19, 300 units purchased at $33 each on 11/20/19, 400 units purchased at $37 each on 12/15/19, 200 units purchased at $39 each on 12/31/19. During 2020, Ranger Co. purchased an additional 6,300 units at the prevailing price of $43 which equaled the year-end replacement cost. If Ranger sold 7,000 units, determine the inventory profits resulting from LIFO liquidation ignoring tax effects. Estimating LIFO reserve A company records its inventory ledger using a FIFO cost assumption. At 1/1/20, balance of inventory according to this measure is $100,000, while its ending inventory is recorded at a balance of S170,000 on 12/31/20. Because the company uses LIFO to determine taxable income, it estimated that its inventory balances under LIFO would be $60,000 and 890,000 1. If COGS, using a FIFO cost assumption, was $400,000 for the year 2020, determine the amount of COGS to be reported using a LIFO cost assumption 2. Have inventory costs increased or decreased over the course of 2020? 3. What impact would utilizing LIFO have on the inventory turnover ratio? Lower of cost or NRV NRV Inventory Cost (assigned type by cost method) A $2,000 $1,000 C $3,000 Total Estimated selling price $7,000 $1,200 $2,900 Estimated costs to dispose 5400 S300 S500 1. Determine the amount of write-down provided the firm judges by the entire inventory. 2. Determine the amount of the write-down provided the firm judges by cach inventory - type. 3. Provide journal entries for the write-downs assessed in #1 and #2 using an indirect and direct method utilizing a perpetual inventory system. C O Print Layout View Sec 1 Pages: 1 of 1 Words: 199 of 284 ELE 109%