Case Assignment

The objective is for the student to become familiar with the cost estimation systems used to measure inventory and cost of goods sold (cost of sales). The Inventory and Cost of Sales are classified in the asset section of the Balance Sheet and the Statement of Income (Earnings), respectively.

The following items will be assessed in particular:

1. The Beautifully Fabulous Beauty Salon (BFBS) purchases its inventory from a manufacturer in California. BFBS has a high selling product called Beauty Gloss. During the year BFBS disclosed the following information concerning the inventory:

January 1, 2015	Beginning Inventory	245 units	$27.00 per unit
March 31, 2015	Purchase of Inventory	360 units	$29.00 per unit
June 30, 2015	Purchase of Inventory	1000 units	$32.00 per unit
September 30, 2015	Sales of Inventory	1447 units

1. Analyze the above data using the LIFO an FIFO methods. Open the following excel spreadsheet (FIFO VS. LIFO ANALYSIS) and fill in the table of BFBSs Inventory and Cost of Goods Sold (COGS) analysis.
   1. Inadditiontotheabovedata,supposethenumberofunitsavailableatthebeginningofJanuarywas545andthecostoftheMarchpurchasewas$31.00perunit;whatwouldCOGSbeforSeptember?WhatwouldtheendingInventorybeforSeptember?

Please Attach excel spreadsheet with answer.