Homework: 4.5 - Homework: MyAccounting LabTM Homework 4 Save HW Score: 92.65%, 92.65 of 100 pts Score: 1.65 of 9 pts 11 of 15 (15 complete) E6-19 (similar to) Question Help Assume that Gameland store bought and sold a line of dolls during December as follows: (Click the icon to view the transactions.) Gameland uses the perpetual inventory system Read the requirements Requirement 1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method. 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 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 Purchases Inventory on Hand Unit Total Total Unit Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost Dec. 1 Dec. 8 Dec. 14 Dec. 21 Totals i More Info units @ $ 10 each Dec. 1 Beginning merchandise inventory 13 units @ $ 22 each 8 Sale 8 units @ 13 each 14 Purchase 17 units @ $ 22 each 21 Sale 15 Print Done Requirements 1 1 Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method 2. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the LIFO inventory costing method. 3. Which method results in a higher cost of goods sold? 4. Which method results in a higher cost of ending merchandise inventory? 5. Which method results in a higher gross profit? Print Done Inventory on Hand Purchases Cost of Goods Sold Total Total Unit Total Unit Unit Quantity Date Quantity Cost Cost Cost Cost Quantity Cost Cost 9 S 11 S 99 Dec. 1 7 $ 4 S 9 $ 9 $ 63 36 Dec. 8 16 $ 13 $ 4 S 9 S 208 36 Dec. 14 16 $ 13 $ 208 5 S 4 $ 9 $ 13 $ Dec. 21 36 65 13 $ 11 $ 143 242 16 208 $ S 65 22 Totals Compute the gross profit using the using the FIFO inventory costing method. 154 using the FIFO inventory costing method. Gross profit is $ Requirement 2. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the LIFO inventory costing method. 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 recor 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.) Purchases Cost of Goods Sold Inventory on Hand Total Unit Total Unit Total Unit Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost 99 11 S 9 S Dec. 1 36 7 S 9 $ 4 S Dec. 8 9 S 63 16 S 13 $ 4S Dec. 14 208 9 $ 36 16 S 13 $ 208 9 $ 15 $ 4 S 36 13 195 Dec. 21 13 1 S 13 S 208 $ 258 S 49 22 16 5 Totals Compute the gross profit using the using the LIFO inventory costing method. Gross profit is $ using the LIFO inventory costing method. Compute the gross profit using the using the LIFO inventory costing method Gross profit is $ 138 using the LIFO inventory costing method. Requirement 3. Which method results in a higher cost of goods sold? The method with the higher cost of goods sold is LIFO. Requirement 4. Which method results in a higher cost of ending merchandise inventory? The method with the higher cost of ending merchandise inventory is FIFO Requirement 5. Which method results in a higher gross profit? The method with the higher gross profit is FIFO