Application Assignment 3 Chapter 8 LIFO/FIFO/Average Cost under Periodic and Perpetunt Inventory Systems Spelling Company had the following transactions in connection with their Inventory account during the month of August 1-Aug 3-Aug 7-Aug 11 Aug 16-Aug 23-Aug PURCHASES Units Unit Cout 040 S 8.20 675 8.30 1215 8.40 575 8.50 550 8.55 620 8,60 4275 4-Aug 10-Aug 12-Aug 17-Aug 20-Aug 25-Aug SALES Units Unit Cost 220 $ 1260 630 12.60 815 13.00 850 13.00 720 13.50 575 13.50 3610 1. 2 3. Instructions: Calculate the total number of ending inventary units. (This number will be used for all methods and assumptions) . Assuming that the company keops perpetual records in units only, compute the inventory at August 31, using (1) LIFO (2) FIFO and (3) average cout. (the periodic method) b. Assuming that perpetual records are kept in dollars, compute the inventory at August 31, using (1) LIFO: (2) FIFO and (3) average cost. (the perpetual method) c. Calculate the cost of goods sold Spelling Company should record for the month of August assuming the periodic inventory method for (1) LIFO; (2) FIFO and (3) average cost d. Calculate the cost of goods sold Speling Company should record for the month of August assuming the perpetual Inventory method for (1) LIFO (2) FIFO and (3) average cost Calculate the Gross Profit for LIFO and FIFO under the periodic method. You are to create workshoets within this document that calculate the requested information provide for above. I must see your work in order to give full credit This is your opportunity to flex your Excel muscle and utilize this powerful software to help prepare calculations which are cumbersome and time consuming to do manually. I want to see good organization of data, good usage of Excel functions, and a logical flow of data for each solution area. Label your work appropriately If I believe you have shared or copied your data/workshools, I will provide a zero for the assignment. Do your own work please! Provide the Answers on the SOLUTIONS tab in the workbook (use cell references). But make sure this document also provides the backup Information calculation for each solution Do not hard enter any number that is a calculation...uso formulas and references throughout **Present solutions rounded to two decimals CHECK FIGURES LIFO Perpetual Ending Inventory FIFO Periodic Cost of Goods Sold Average Cost Perpetual Ending Inventory S 5,471,00 $ 30,261,75 $ 5,659.78 1. Total Ending Inventory Units: Ending Inventory (periodic): 2 a) LIFO FIFO Average Cost Ending Inventory (perpetual): 2b) LIFO FIFO Average Cost Cost of Goods Sold (periodic): 2 c) LIFO FIFO Average Cost Cost of Goods Sold (perpetual): 2 d) LIFO FIFO Average Cost 3. Gross Profit LIFO FIFO
