Help Save & Exit Submit Chapter 7 Homework Check my work 7 Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system Assume its accounting records provided the following information at the end of the annual accounting period, December 31. 25 Di Transactions Units Unit Cost Beginning inventory, January 1 200 $ 21 Transactions during the year a. Purchase on account, March 2 350 23 b. Cash sale, April 1 (37 cach) (350) C. Purchase on account, June 30 250 27 d. Cash sale, August 1 (537 each) (90) TIP Although the purchases and sales are listed in chronological ordet Scrappers determines the cost of goods sold after all of the purchases have occurred Book terce Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods (Round "Cost per Unit" to 2 decimal places.) a. Last-in, first-out b. Weighted average cost c. First-in, first-out d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30, 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 10 Req 2A Req 28 a. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the LIFO method. (Round "Cost per Unit anwers to 2 decimal places.) Units Cost per Unit Total $ 0 0 LIEO (Periodic) Beginning Inventory Purchases March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase Units from June 30 Purchase Total Cost of Goods Sold Ending Inventory 0 0 Reg 14 Req 1B > Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Req 1C Req ID Reg 2A Reg 2B b. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the Weighted average method. (Round "Cost per Unit anwers to 2 decimal places.) Units Cost per Unit Total $ 0 Weighted Average Cost(Periodic) Beginning inventory Purchases March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Ending Inventory 0 $ 0 Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Req 1D Req 2A Req 2B c. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the FIFO method. (Round "Cost per Unit" anwers to 2 decimal places.) Units Cost per Unit Total FIFO (Periodic Beginning Inventory Purchases $ 0 0 0 March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase Units from June 30 Purchase Total Cost of Goods Sold Ending Inventory 0 0 Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Reg 10 Req 10 Req 2A Reg 2B d. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the Specific identification method. Assume that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. (Round "Cost per Unit" anwers to 2 decimal places.) Show less Units Cost per Unit Total . $ 0 0 0 Specific Identification (Periodic) Beginning Inventory Purchases March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase Units from June 30 Purchase Total Cost of Goods Sold Ending Inventory 0 0 Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31 Units Unit Cost 200 $ 21 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 (537 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($37 each) 23 350 (350) 250 (90) 27 TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) a. Last-In, first-out b. Weighted average cost. c. First-in, first-out d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30, 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below
