Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Application Assignment #3 Chapter 8 LIFO/FIFO/Average Cost under Periodic and Perpetual Inventory Systems Spelling Company had the following transactions in connection with their inventory account

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Application Assignment #3 Chapter 8 LIFO/FIFO/Average Cost under Periodic and Perpetual 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 Cost 675 $ 8.10 690 8.25 1180 8.40 610 8.50 510 8.55 650 8.60 4315 4-Aug 10-Aug 12-Aug 17-Aug 20-Aug 25-Aug SALES Units Unit Cost 250 $ 12.60 345 12.60 825 13.00 630 13.00 840 13.50 635 13.50 3525 1. Instructions: Calculate the total number of ending inventory units. (This number will be used for all methods and assumptions) 2. a. Assuming that the company keeps perpetual records in units only, compute the inventory at August 31, using (1) LIFO; (2) FIFO and (3) average cost. (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 Spelling Company should record for the month of August assuming the perpetual inventory method for (1) LIFO; (2) FIFO and (3) average cost. You are to create worksheets within this document that calculate the requested information provided for above. I must see your work in order to give full credit. Solutions to Application Assignment #3 Student Name: 1. Total Ending Inventory Units: Ending Inventory (periodic): 2 a) LIFO FIFO Average Cost Ending Inventory (perpetual): 2 b) 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 BONUS (2 points each) Gross Profit (periodic) LIFO FIFO Data 1 Data 1 Data2

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

ISE International Accounting

Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera

5th Edition

1260547981, 9781260547986

More Books

Students also viewed these Accounting questions

Question

How to find if any no. is divisble by 4 or not ?

Answered: 1 week ago

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago