8.1A is of Inventory Problem Set A 4 On January 15, 2015, Sports World sold 1,000 Ace-5 fishing reels to Angler's Warehouse. Immediately prior to this sale, Sports World perpetual inventory records for Ace-5 reels included the following cost layers: Purchase Date Dec. 12, 2014 Jan. 9, 2015... Total on hand *** Quantity 600 900 1,500 Unit Cost $29 32 Total Cost $17,400 28,800 $46,200 Instructions Note: We present this problem in the normal sequence of the accounting cycle-that is, journal entries before ledger entries. However, you may find it helpful to work part b first. a. Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,000 Ace-5 reels, assuming that Sports World uses: 1. Specific identification (500 of the units sold were purchased on December 12, and the remaining 500 were purchased on January 9). 2. Average cost. FIFO. 3. 4. LIFO, 373 b. Complete a subsidiary ledger record for Ace-5 reels using each of the four inventory valua- tion methods listed above. Your inventory records should show both purchases of this prod- uct, the sale on January 15, and the balance on hand at December 12, January 9, and January 15. Use the formats for inventory subsidiary records illustrated on pages 345-347 of this chapter. c. Refer to the cost of goods sold figures computed in part a. For financial reporting purposes, can the company use the valuation method that resulted in the lowest cost of goods sold if, for tax purposes, it used the method that resulted in the highest cost of goods sold? Explain.

B. 1A is of Inventory On January 15, 2015, Sports World sold 1,000 Ace-5 fishing reels to Angler's Warehouse. Immediately prior to this sale, Sports World perpetual imentory records for Ace-5 reels included the following cost layers: Instructions Noter We present this problem in the normal sequence of the accounting cycle-that is, journal entries before ledger entries. However, you may find it helpful to work part b first. a. Prepare a separate journal entry to recond the cost of goods sold relating to the January 15 sale of 1,000 Ace-5 reels, asruming that Sports World uses: 1. Specifie identification ( 500 of the units sold were purchased on December 12 , and the remaining 500 were purchased on January 9). 2. Average cost. 3. FIFO 4. LIFO. roblem Set A 373 b. Complete a subsidiary lodger record for Ace-5 recls using each of the four imventory valua tion methods listed above. Yisur imentory records should show both parchanes of this prodchaphex. c. Refer to the cat of goods soll figures computod in purt a. For financial reporting purposes