Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alternative Inventory Methods Garrett Company has the following transactions during the months of April and May: Date Transaction Units Cost/Unit April 1 Balance 500 17

Alternative Inventory Methods

Garrett Company has the following transactions during the months of April and May:

Date Transaction Units Cost/Unit
April 1 Balance 500
17 Purchase 200 $5.10
25 Sale 150
28 Purchase 100 5.80
May 5 Purchase 250 5.10
18 Sale 300
22 Sale 50

The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.

Required:

1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:

  1. FIFO periodic
    Cost of Goods Sold Ending Inventory
    April $ $
    May $ $
  2. FIFO perpetual
    Cost of Goods Sold Ending Inventory
    April $ $
    May $ $
  3. LIFO periodic
    Cost of Goods Sold Ending Inventory
    April $ $
    May $ $
  4. LIFO perpetual (Round your intermediate calculations to the nearest cent.)
    Cost of Goods Sold Ending Inventory
    April $ $
    May $ $
  5. Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.)
    Cost of Goods Sold Ending Inventory
    April $ $
    May $ $
  6. Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)
    Cost of Goods Sold Ending Inventory
    April $ $
    May $ $

2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".

April Cost of Goods Sold Ending Inventory
Difference $ $
May Cost of Goods Sold Ending Inventory
Difference $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Leadership Style At PT Tekstil Bandung A Management Audit Investigation Following The Prolonged Economic Slowdown In Indonesia

Authors: Samuel P.D. Anantadjaya, Irma M. Nawangwulan

1st Edition

3659328979, 978-3659328978

More Books

Students also viewed these Accounting questions