completed thase imvontory Iransactions: FHA (Click the icon to view the inventory transactions.) Requirements 1. The preceding dasa are taken frem the store's perpetual inventory records. Which cost mothod does the store use? Explan how you antived at your anbwer. 2. Doterthine the store a cost of gosds sold for Decernber. Also ocmpite gross profid for December. 3. What is the cost of the store's Docember 31 iventory of water sizs? for this diflerenee? Requirement 1. Which cost method does the sloce use? Eaplah how you afrived at your anyaer Champlonshp Sports utes This is apparent from the flece of costs out of inventary. For example, the December 13 saie shows une cost of works Requiremeat 2. Doternine the kloreit oont of goods sovi for Decenbar. Aliro comigule gross prafit for Dacember. The 005 of goodi toid in 1 The grits profit far Docemider is 11 Renuirement 3. What an the cost of the storeit Decomber 3t imvontory of water tikis? The cost of the comcuany's inveritery at December 31 is 3 wculd it account for this is therence? The compary would fefort ending imventory an 1 because the requras inwentacy to be reported in the financial atatanents at completed these inventory Iransactions. (Click the licon fo view the ifventory transactions.) Requirements 1. The proceding data are taken from the stoce's pecpetual inventory recoeds. Which cost method does the stoen use? Explain how you arrived at your arswer. 2. Dotertine the store's cost of goods sold for December. Aso oompute gross profs for December. 3. Winat is the cost of the store's December 31 inventery of water shis? for this difnrence? The gross profit for December is 3 Requirement 3. What is the oost of the store's Decenber 31 inventery of water skis? The cost of the company's inventory at December 31 is 5 would it account for this diflerence? The compary would tepert ending inventory at 41 because the tequires inventory to be reperied in the financial statements at Aucount for this difforence by preparng the necessary joumal entry. (Record debiss first, then credits. Explanations are not required.) re taken from the store's perpetual inventory records. Which cost method does the store use? Expla Inventory Transactions Requirement 1. Which cost method does the store use? Explain how you arrived at Championship Sports uses This is apparent from the flo nple, the December 1: rks. Requirement 2. Determine cember. Also compute The cost of goods sold is $ LIFO. The gross profit for Decemb Weighted-average cost. Requirement 3 . What is the cost of the store's December 31 inventory of water skis? The cost of the company's inventory at December 31 is \$ which came from the Decemb $38 $40 $42 port as inventory on the balance sheet? Inclu This is how which came from the beginning inventory. the December 9th purchase. the December 29th purchase. it chose that value. How Requirement 4. Assume that enaing inventury uevilien wy weiv. would it account for this difference? ecember 31 inve Lower of Cost and Net Realizable Value rule FIFO rule declined by $210 Weighted-average cost rule ie balance sheet? Incl $ because the requires inventory to be reporte cessary journal entry. (Record debits first, then credits. Explanations are not required.) the First-in, first-out value. the Weighted-average value. whichever is lower of cost or net realizable value. 210. Wh the Account for this difference by preparing the necessary journal entry
