Fineial Acctg(Turck) (11)SupEx(inventory). Name_(prepare on separate paper) (B) ALTERNATIVE INVENTORY ASSUMPTIONS AND METHODS - Eve & Tori One-Item Gift Shop, Inc. began operations on December 1, 2018! The only inventory transaction in 2018 was the purchase of inventory on December 10, 2018 at a cost of $20 per unit. None of this inventory was sold in 2018. Relevant information is as follows: Ending Inventories in Units: as of December 31, 2018, specifically identified by purchase date: December 10, 2018 100units 100 units as of December 31, 2019, specifically identified by purchase date: December 22, 2019 100 units July 20, 2019 50units 150units Transactions: During calendar year 2019, the following purchases and sales were made: all transactions are on open account (n/30) Purchases at cost Sales March 15,2019 300 units at $24/unit April 10, 2019 200 units July 20, 2019 300 units at $25/unit August 20, 2019 300 units September 4, 2019 200 units at $28/unit November 18, 2019 150 units December 22, 2019 100 units at $30/unit Dec. 12, 2019 200 units Assume units sold for $70 each. Instructions 1. Determine the number of Units available for sale and Cost of Goods Available for Sale for 2019. 2. Assume the company uses a Periodic system. Determine (1) Ending Inventory, (i) Cost of Goods Sold and (iii) Gross Profit under following cost flow assumptions: (a) FIFO (CkFig: COGS = $20,900) (b) LIFO (CkFig: COGS - $22,100) (C) Weighted-Average Cost (CkFig: COGS - $21,505) (d) Specific Identification (CkFig: COGS = $21,050). 3. Assume the company uses a Perpetual system. Determine (i)Ending Inventory and (ii) Cost of Goods Sold under following cost flow assumptions: (a) FIFO (6) LIFO (CkFig: COGS - $21,300) (e) Weighted-Average Cost (CkFig: COGS - $20.995). (also called Moving Average Method) (d) Specific Identification Provide a Short Answer: What critical information do you need, but is missing from the problem and prevents us from employing a combination perpetual-&-specific identification inventory method for 2019? Hint: try to find dollar values for Cost of Goods Sold on the April 10, 2019 transaction. 4. (a) For July 20, prepare needed journal entries under the following conditions: () Perpetural FIFO, (ii) Perpetual LIFO, (ii) Perpetual Weighted-Ave. (b) Repeat () (i)(iii) for November 18. (e) Provide a Short Answer: If at all, how would each journal entry differ under Periodic? Note: I am 99% confident of the check figures, but I do not guarantee them. Warning: The reporting period for this problem is 2019. The assignment is to get fairly stated year-end inventory at 12/31/2019 and Cogs for the year 2019. 2 Must a company that can "specifically identify" inventory units have to report using Specific Identification in its published financial statements? No! Reporting OM/I and COGS with Specific Identification is rare in practice! Use plenty of paper for this SupEx.
