Ch 7 HW Part 2 6 Ta Help Save & Exit Submit Check my work 0.64 DO look Priv Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31 Beginning inventory, January 11 Transactions during the years a. Purchase on account, March 2 b. Cash sale, April 1 (142 each) C. Purchase on account, June 30 d. Cash sale, August 1 ($42 each) Units Unit Co 26 290 28 (330) 238 32 (55) TIP Although the purchases and sales are listed in chronological order. Scrappers determines the cost of goods sold after all of the purchases have occurred Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: [Round "Cost per Unit" to 2 decimal places.) a. Last in, first-out. b. Weighted average cost c. First in, first-out d. Specific identification, assuming that the April 1 sale was selected one fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Mc 67 Next> 6 064 points d. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the Specific identification method. Assume that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. (Round "Cost per Unit" anwers to 2 decimal places.) Specific Identification (Periodic Units Cost per Linit Total elloos Beginning Inventory $ 0 Print References Purchases March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase: Units from June 30 Purchase Total Cost of Goods Sold Ending Inventory 0 Show less Check my work Submit Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system Assume its accounting records provided the following information at the end of the annual accounting period, December 31 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 (542 each) c. Purchase on account, June 30 d. Cash sale, August 1 (542 each) Units Unit Cost 180 $26 28 32 290 (330) 230 (55) TIP: Although the purchases and sales are listed in chronological order. Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) a. Last-in, first-out b. Weighted average cost. c. First-in, first-out d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Check my work HOQ LA q 16 Req 10 Ke ZA d. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the Specific identification method. Assume that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. (Round "Cost per Unit anwers to 2 decimal places.) Show less Beginning Inventory Ook Specific Identification.(Periodic) int ences Purchases March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase Units from June 30 Purchase Total Cost of Goods Sold Ending Inventory Units Cost per Unit Total $ 0 0 Check my work Req 1A Req 1B Req 1C Req ID Req 2A Req 28 a. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the LIFO method. (Round "Cost per Unit" anwers to 2 decimal places.) LIFO (Periodic) ok Beginning Inventory Purchases inces March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase Units Cost per Unit Total 180 $ 26.00 $ 4,680 290 $ 28.00 230 $ 32.00 520 15,480 135 8,460 155 $ 28.00 Units from June 30 Purchase 230 $ 32.00 Total Cost of Goods Sold 385 Ending Inventory 315 11,700 S 8.460 Req 18 > Heubas, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Req ID Req 2A Req 28 eBook Print ferences Of the four methods, which will result in the highest gross profit? Last-in, first-out OWeighted average cost OFirst-in, first-out OSpecific identification