Comprehensive Problem 1 (Hurst Company).

Calculate the total amount to be assigned to the Cost of Goods Sold for the year ending 20x2 and the ending inventory on December 31 under each of the following methods. A) FIFO B) LIFO C) WEIGHTED AVERAGE

Draw Page Layout Formulast Review View Help Share Co Home Insert Search File AutoSumA Wrap Text General Paste Conditional Format as Cell Insert Delete Format Sort & Find &Ideas B 1 u,-' . A. Merge & Center $, 96, , ormatting Table Styles Filter Select Editing Clipboard Font Styles Cells Alignment Number Hurst Company's beginning inventory and purchases during the fiscal year ended December 31, 20X2 4 were as follows Units Date Event Unit Price Total Cost 1,500 $ 10.00 $15,000.00 500 11.50 5,750.00 600 $ 14.50 8,700.00 1,200 15.00 18,000.00 800 $ 16.50 $ 13,200.00 300 $ 18.00 $ 5,400.00 700 $ 18.50 $12,950.00 400 $ 20.00 $8,000.00 6,000 8 January 1, 20X2 9 January 12 10 February 28 beg. Inventory 1st purchase 2nd purchase 11 June 29 3rd purchase 12 August 31 4th purhcase 5th purchase 6th purchase 13 October 29 14 November 30 15 December 21 7th purchase $ 87,000.00 16 Required 1) Calculate the total amount to be assigned to the Cost of Goods Sold for the year ending 20X2 and the ending inventory on December 31 under each of the following periodic inventory methods: a) FIFO, b) LIFO, c) Weighted average (round calculations to 2 decimal 20 places). 21 22 1a) FIFO method: 23 Cost of Ending Inventory Total Cost of Goods Sold Event 24 Date Units xUnit PriceTotal Units xUnit Price 25 26 January 1, 20X2 27 Beg. Inventory 35 36 37 Cost of Ending Inventory Total 38 1b) LIFO method: 39 Cost of Goods Sold Units xUnit Price Total Units XUnit Price E Event Date 40 Beg. Inventory 42 January 1, 20X2 43 45 46 L4 51 52 Cost of Ending Inventory Total 53 54 1c) Weighted Average Method: Cost of Goods Sold Units x Unit Price Total Units x Unit Price Event Date 56 57 Beg. Inventory 58 January 1, 20X2 59 60 61 62 Required: 2a) Compute the Gross Margin for each of the methods assuming that the Unit sales price was $20.00 for each unit sold 70 2b) Answer the question "Which method resulted in the highest gross margin?" 71 72 2a) Weighted Average FIFO LIFO Method method 73 74 75 Sales units x Sellina Price 76 77 Less: Cost of Goods Sold 78 79 Gross Margin 80 81 2b) 82 Which method resulted in the highest gross margin