Fit Planet began January with merchandise inventory of 90 crales of vitamins that cost a total of $5,850. During the month, Fit Planet purchased and sold merchandise on account as follows: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transations have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Cost of Goods Sold Inventory on Hand Unit Unit Total Total Date QuantityCostCostQuantity Cost Cost QityCost Cost Data Table 5.850 5,850 9.880 6,080 Jan. 1 130 9,880 65 76 76 130 130 crates 140 crates 170 crates 180 crates 76 eaclh 106 each 86 each 114 each Jan. 5 Purchase 65 5,850 13 Sale 18 Purchase 26 Sale 76 3,800 170 14,620 76 6,080 14,620 6,020 18 170 86 76 6,080 8,600 24,330 26 Print Done 24,500 6,020 Determine the company's gross profit using the FIFO inventory costing method. Gross profit is $ 11.030 using the FIFO inventory costing method. Requiremen 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Date Quantity CoCostQuantity Cost CostQntity Cost Cost Data Table Jan, 1 130 76 9,880 Jan. 5 Purchase1 130 crates 76 each 140 crates S 106 each 170 crates@S 86 each 180 cratesS 114 each 13 140 13 Sale 18 Purchase 26 Sale 18 170 86 14,620 26 Print Done Totals Determine the company's gross profit using the LIFO inventory costing method. Gross profit is $ using the LIFO inventory costing method. Requirement 3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the weighted-average inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Purchases Cost of Goods Sold Inventory on Hand Unit Cost Unit Total Unit Total Total Data Table Date Quantity Cost Cost Quantity Cost Cost Quantity c Cost Jan. 1 Jan. 5 Purchase 13 18 26 13 Sale 18 Purchase 26 Sale 130 crates 76 each 140 crates 106 each 170 crates 86 each 180 crates114 each Totals Determine the company's gross profit using the weighted-average inventory costing method. Gross profit is $ Requirement 4. If the business wanted to pay the least amount of income taxes possible, which method would it choose? If the business wanted to pay the least amount of income taxes possible, they would choose LIFO. Print Done using the weighted-average inventory costing method
