AC 13 20 : Module 1 Merchandise Inventory Lab 1 . 1 Accounting Inventory Principles 1 This lab requires you to complete a perpetual inventory using the first - in, first - out (FIFO) and last - in, first - out (LIFO) methods. Required Setup and Resources: Microsoft Excel Recommended Procedures: As a merchandising operation, Jake?s Computer Sales and Repair must correctly account for inventory. The business purchases and sells inventory as part of its ordinary operations and so, Jake must se lect an appropriate inventory costing method. Several costing methods are acceptable under Generally Accepted Accounting Principles (GAAP); Jake has narrowed down the choices to two methods ? FIFO and LIFO. In analyzing the effect of each of these methods, J ake applies the FIFO method and the LIFO method, in turn, to the inventory purchase and sale transactions that occurred during the month of May 20 XX . The inventory transactions are as follows: ? May 1, 20XX. The business reports a beginning inventory balance of $13,744. ? May 3, 20XX. Sold 55 units of inventory to customers for $200 each. ? May 3, 20XX. Purchased 70 A - line tablet computers at a cost of $190 per unit. ? May 8, 20XX. Sold 45 units to customers at $200 each. ? May 25, 20XX. Purchased 20 units at a pr ice of $194. ? May 27, 20XX. Sold 58 units at $200 each. For the given transactions, complete the following tasks by using Lab 1.1 Worksheets: Task 1: Using the AC1320_nn_Lab 1.1_Task 1.xlsx worksheet, analyze each of the transactions and complete the perpetual inventory record for the month of May 20 XX , using the FIFO method. Task 2: Using the AC1320_nn_Lab 1.1_Task 2.xlsx worksheet, make the appropria te journal entries for the transactions given earlier. Assume that all transactions were for cash. Annotations are not necessary. Task 3: Using the AC1320_nn_Lab 1.1_Task 3.xlsx worksheet, complete the perpetual inventory record for the month of May 20XX, using the LIFO method. Use the inventory transactions described earlier. Rename the worksheets, replacing nn with your initials.

AC

13

20

: Module

1

Merchandise Inventory

Lab

1

.

1

Accounting Inventory Principles

2

Submission

Requirements:

Submit the completed worksheets,

AC1320_nn_Lab 1.1_Task 1.xlsx

,

AC1320_nn_Lab 1.1_Task 2.xlsx

, and

AC

1320_nn_Lab 1.1_Task 3.xlsx

,

to your instructor for evaluation.

Evaluation

Criteria:

The lab will be evaluated using the following criteria:

Task

1:

?

Did you correctly enter inventory and purchase data (quantity, unit cost) into the inventory record?

?

Did

you correctly fill totals?

?

Did you compute the correct cost of goods sold and ending inventory totals?

Task

2:

?

Did you correctly journalize inventory transactions?

Task

3:

?

Did you correctly compute inventory purchase data (quantity, unit cost) into the inv

entory record?

?

Were totals correctly filled?

?

Did you compute the correct cost of goods sold and ending inventory totals

Date May 1, 20XX May 3, 20XX May 3, 20XX May 8, 20XX May 25, 20XX May 27, 20XX Total Quantity Purchases Unit Cost Total Quantity Cost of Goods Sold Unit Cost f Goods Sold FIFO Total Inventory Available for Sale Quantity Unit Cost Total 79 $174 $13,744 May 3, 20XX May 3, 20XX May 8, 20XX May 25, 20XX May 27, 20XX Date May 1, 20XX May 3, 20XX May 3, 20XX May 8, 20XX May 25, 20XX May 27, 20XX Total Quantity Purchases Unit Cost Total Quantity Cost of Goods Sold Unit Cost f Goods Sold LIFO Total Inventory Available for Sale Quantity Unit Cost Total 79 $174 $13,744 AC1320: Module 1 Merchandise Inventory Lab 1.1 Accounting Inventory Principles This lab requires you to complete a perpetual inventory using the first-in, first-out (FIFO) and last-in, firstout (LIFO) methods. Required Setup and Resources: Microsoft Excel Recommended Procedures: As a merchandising operation, Jake's Computer Sales and Repair must correctly account for inventory. The business purchases and sells inventory as part of its ordinary operations and so, Jake must select an appropriate inventory costing method. Several costing methods are acceptable under Generally Accepted Accounting Principles (GAAP); Jake has narrowed down the choices to two methodsFIFO and LIFO. In analyzing the effect of each of these methods, Jake applies the FIFO method and the LIFO method, in turn, to the inventory purchase and sale transactions that occurred during the month of May 20XX. The inventory transactions are as follows: May 1, 20XX. The business reports a beginning inventory balance of $13,744. May 3, 20XX. Sold 55 units of inventory to customers for $200 each. May 3, 20XX. Purchased 70 A-line tablet computers at a cost of $190 per unit. May 8, 20XX. Sold 45 units to customers at $200 each. May 25, 20XX. Purchased 20 units at a price of $194. May 27, 20XX. Sold 58 units at $200 each. For the given transactions, complete the following tasks by using Lab 1.1 Worksheets: Task 1: Using the AC1320_nn_Lab 1.1_Task 1.xlsx worksheet, analyze each of the transactions and complete the perpetual inventory record for the month of May 20XX, using the FIFO method. Task 2: Using the AC1320_nn_Lab 1.1_Task 2.xlsx worksheet, make the appropriate journal entries for the transactions given earlier. Assume that all transactions were for cash. Annotations are not necessary. Task 3: Using the AC1320_nn_Lab 1.1_Task 3.xlsx worksheet, complete the perpetual inventory record for the month of May 20XX, using the LIFO method. Use the inventory transactions described earlier. Rename the worksheets, replacing nn with your initials. 1 AC1320: Module 1 Merchandise Inventory Lab 1.1 Accounting Inventory Principles Submission Requirements: Submit the completed worksheets, AC1320_nn_Lab 1.1_Task 1.xlsx, AC1320_nn_Lab 1.1_Task 2.xlsx, and AC1320_nn_Lab 1.1_Task 3.xlsx, to your instructor for evaluation. Evaluation Criteria: The lab will be evaluated using the following criteria: Task 1: Did you correctly enter inventory and purchase data (quantity, unit cost) into the inventory record? Did you correctly fill totals? Did you compute the correct cost of goods sold and ending inventory totals? Task 2: Did you correctly journalize inventory transactions? Task 3: Did you correctly compute inventory purchase data (quantity, unit cost) into the inventory record? Were totals correctly filled? Did you compute the correct cost of goods sold and ending inventory totals? 2