Compute FIFO, LIFO, and Average Cost-Periodic and LIFO and average cost Perpetual). Presented below is information related to Product A of Prince Company for the month of July
(Compute FIFO, LIFO, and Averge Cost-Periodic and LIFO and averge cost Perpetual). Presented below is information related to Product A of Prince Company for the month of July Units Unit Units Selling Date Transaction In Cost Total Sold Price Total 7/1 Balance 100 $ 4.10 $ 410 6 Purchase 800 4.21 3,368 7 Sale 300 $ 7.00 $ 2,100 10 Sale 300 7.30 2,190 12 Purchase 400 4.54 1,816 15 Sale 200 7.40 1,480 18 Purchase 300 4.60 1,380 22 Sale 400 7.40 2,960 25 Purchase 500 4.70 2,350 30 Sale 200 7.50 1,500 $ 10,230 2,100 $9,324 A. B. c. Assuming that the periodic inventory system is used, compute the inventory cost at July 31 under the FIFO, LIFO and average cost cost flow assumptions. Which of the following cost flow assumptions above will yield the highest gross profit for the income statement in Part A and explain why? Include the preparation of the income statement through gross profit for all three methods. Which of the following cost flow assumptions above will yield the lowerst ending inventory for the balance sheet? and explain why? Complete the Perpetual Schedule for LIFO and Average Cost applying the facts above. Compute the income statement through the gross profit for Perpetual Lifo and Perpetual Avg. Cost Explain the reason for the differnces in the computation of the ending inventory and gross profit in Part A and B for LIFO and Average Cost compared to the ending inventory and gross profit using the perpetual inventory syatem. (Show all of your work on the workpaper provided for this assignment). D. E. F. Part A. FIFO Part A. LIFO Part A. Average Cost Part B Average Cost FIFO LIFO Sales Cost of Goods Sold* Gross Profit *Cost of Goods Sold Compuation Part C Cost of goods sold QTY Unit Cost Total Cost D. Lifo Perpetual System Purchases Date QTY Unit Cost Total Cost 7/1 7/6 7/6 7/7 7/7 7/10 7/10 7/12 Inventory on hand QTY Unit Cost Total Cost #VALUE! #VALUE! #VALUE! $ $ $ $ $ $ $ #VALUE! 7/12 $ $ 7/12 7/15 7/15 7/15 7/18 7/18 7/18 7/18 7/22 7/22 7/22 7/25 7/25 7/25 7/25 7/30 7/30 7/30 7/30 S $ $ 0 $ 0 $ Totals D. Average Cost - Perpetual System Purchases Cost of goods sold Inventory on hand Date QTY Unit Cost Total Cost QTY Unit Cost Total Cost QTY Unit Cost Total Cost 7/1 $ 7/6 $ 7/7 $ 7/10 #VALUE! $ 7/12 $ 7/15 #VALUE! $ 7/18 #VALUE! S 7/22 7/22 #VALUE! $ 7/25 S 7/30 #VALUE! $ $ $ Total $ E. Average Cost LIFO Sales Cost of Goods Sold Gross Profit F. (Compute FIFO, LIFO, and Averge Cost-Periodic and LIFO and averge cost Perpetual). Presented below is information related to Product A of Prince Company for the month of July Units Unit Units Selling Date Transaction In Cost Total Sold Price Total 7/1 Balance 100 $ 4.10 $ 410 6 Purchase 800 4.21 3,368 7 Sale 300 $ 7.00 $ 2,100 10 Sale 300 7.30 2,190 12 Purchase 400 4.54 1,816 15 Sale 200 7.40 1,480 18 Purchase 300 4.60 1,380 22 Sale 400 7.40 2,960 25 Purchase 500 4.70 2,350 30 Sale 200 7.50 1,500 $ 10,230 2,100 $9,324 A. B. c. Assuming that the periodic inventory system is used, compute the inventory cost at July 31 under the FIFO, LIFO and average cost cost flow assumptions. Which of the following cost flow assumptions above will yield the highest gross profit for the income statement in Part A and explain why? Include the preparation of the income statement through gross profit for all three methods. Which of the following cost flow assumptions above will yield the lowerst ending inventory for the balance sheet? and explain why? Complete the Perpetual Schedule for LIFO and Average Cost applying the facts above. Compute the income statement through the gross profit for Perpetual Lifo and Perpetual Avg. Cost Explain the reason for the differnces in the computation of the ending inventory and gross profit in Part A and B for LIFO and Average Cost compared to the ending inventory and gross profit using the perpetual inventory syatem. (Show all of your work on the workpaper provided for this assignment). D. E. F. Part A. FIFO Part A. LIFO Part A. Average Cost Part B Average Cost FIFO LIFO Sales Cost of Goods Sold* Gross Profit *Cost of Goods Sold Compuation Part C Cost of goods sold QTY Unit Cost Total Cost D. Lifo Perpetual System Purchases Date QTY Unit Cost Total Cost 7/1 7/6 7/6 7/7 7/7 7/10 7/10 7/12 Inventory on hand QTY Unit Cost Total Cost #VALUE! #VALUE! #VALUE! $ $ $ $ $ $ $ #VALUE! 7/12 $ $ 7/12 7/15 7/15 7/15 7/18 7/18 7/18 7/18 7/22 7/22 7/22 7/25 7/25 7/25 7/25 7/30 7/30 7/30 7/30 S $ $ 0 $ 0 $ Totals D. Average Cost - Perpetual System Purchases Cost of goods sold Inventory on hand Date QTY Unit Cost Total Cost QTY Unit Cost Total Cost QTY Unit Cost Total Cost 7/1 $ 7/6 $ 7/7 $ 7/10 #VALUE! $ 7/12 $ 7/15 #VALUE! $ 7/18 #VALUE! S 7/22 7/22 #VALUE! $ 7/25 S 7/30 #VALUE! $ $ $ Total $ E. Average Cost LIFO Sales Cost of Goods Sold Gross Profit F
