C17 G 1 Instructions: Doofenshmirtz Evil Inc. uses the periodic inventory system. They make quarterly purchases...

Transcribed Image Text:

C17 G 1 Instructions: Doofenshmirtz Evil Inc. uses the periodic inventory system. They make quarterly purchases of inventory as outlined below. 2 Doofenshmirtz uses the FIFO inventory method. However, the CEO, Heinz, would like you to calculate COGS and ending inventory for each of 3 the three methods: FIFO, UFO, and weighted average, in order to assist management in deciding to keep or change the method. Complete the 4 tables and answer two questions below. 5 6 7 Beginning Inventory Description # of Units 1,200 Cost per Unit $4.50 Total Cost $5,400 & Jan. 31 Purchase 14,000 $4.65 $65,100 FINAL STEP Beg. Inventory Purchases FIFO LIFO Weighted Avg $5,400 $201,550 $5,400 $201,550 $5,400 $201,550 9 April 31 Purchase 10 July 31 Purchase 11 Oct. 31 Purchase 12 2020 Sales 13 Ending inventory 10,000 $4.75 $47,500 COGAFS $206,950 $206,950 $206,950 12,400 $5.00 $62,000 End. Inventory 5,500 $4.90 $26.950 COGS 40,000 3,100 14 15 FIFO Ending Inventory 16 Description #of Units Cost per Unit Total Cost Description UFO Ending Inventory of Units Cost per Unit Total Cost 17 Oct. 31 Purchase leg. Inventory 10 Jan. 31 Purchase 19 Total 3.100 50 Yotal 3,100 50 20 21 Weighted Average Ending Inventory 22 Total Cost of Units Available The inventory costing method that results in the lowest COGS The inventory costing method that results in the highest ending inventory is Income Stme & Satance Sheet Accounts Receivable Inventory & COGS Depreciation Notes C17 G 1 Instructions: Doofenshmirtz Evil Inc. uses the periodic inventory system. They make quarterly purchases of inventory as outlined below. 2 Doofenshmirtz uses the FIFO inventory method. However, the CEO, Heinz, would like you to calculate COGS and ending inventory for each of 3 the three methods: FIFO, UFO, and weighted average, in order to assist management in deciding to keep or change the method. Complete the 4 tables and answer two questions below. 5 6 7 Beginning Inventory Description # of Units 1,200 Cost per Unit $4.50 Total Cost $5,400 & Jan. 31 Purchase 14,000 $4.65 $65,100 FINAL STEP Beg. Inventory Purchases FIFO LIFO Weighted Avg $5,400 $201,550 $5,400 $201,550 $5,400 $201,550 9 April 31 Purchase 10 July 31 Purchase 11 Oct. 31 Purchase 12 2020 Sales 13 Ending inventory 10,000 $4.75 $47,500 COGAFS $206,950 $206,950 $206,950 12,400 $5.00 $62,000 End. Inventory 5,500 $4.90 $26.950 COGS 40,000 3,100 14 15 FIFO Ending Inventory 16 Description #of Units Cost per Unit Total Cost Description UFO Ending Inventory of Units Cost per Unit Total Cost 17 Oct. 31 Purchase leg. Inventory 10 Jan. 31 Purchase 19 Total 3.100 50 Yotal 3,100 50 20 21 Weighted Average Ending Inventory 22 Total Cost of Units Available The inventory costing method that results in the lowest COGS The inventory costing method that results in the highest ending inventory is Income Stme & Satance Sheet Accounts Receivable Inventory & COGS Depreciation Notes