I have attached two documents. One is the instructions and the other is the worksheet. There are three sheets in Excel. Please complete the assignment in the Microsoft Word document. Thanks!

Bill's Lawn Care Mini Practice Part 3 In June, Bill decided to open a small retail operation selling bags of fertilizer to the public. He has decided to begin by offering two kinds of fertilizer. Below is the information for the month of June, 2014, for the two types of fertilizer. Product Feed All Fertilizer Weed and Feed All Fertilizer Selling Price $27.00 $35.00 Purchase Data Date Product Quantity (Bags) 6/1/2014 Feed All Fertilizer 6/1/2014 Weed and Feed All Fertilizer 6/11/2014 Feed All Fertilizer 6/15/2014 Weed and Feed All Fertilizer 6/22/2014 Feed All Fertilizer 6/28/2014 Feed All Fertilizer 6/28/2014 Weed and Feed All Fertilizer All purchases are paid in cash at the time from the distributor, so there is no freight Sales Data (summarized by week) Date Product 6/9/2014 6/9/2014 6/16/2014 6/16/2014 6/23/2014 6/23/2014 6/30/2014 6/30/2014 All sales are Feed All Fertilizer Weed and Feed All Feed All Fertilizer Weed and Feed All Feed All Fertilizer Weed and Feed All Feed All Fertilizer Weed and Feed All on credit. Fertilizer Fertilizer Fertilizer Fertilizer Price per Bag 10 15.00 10 20.00 20 15.50 10 19.50 10 15.75 10 15.50 10 19.75 of the purchase and Bill picks up the fertilizer charge. Quantity (Bags) 6 4 12 5 8 2 10 4 In addition to the sales, on 6/20/14, a customer returned one bag of Feed All Fertilizer to Bill for credit on account. Instructions: 1. Calculate the Cost of Goods Sold and the Ending Inventory values for the fertilizer products under 1) Average Cost, 2) First-In, First-Out(FIFO), and 3) Last-In, First-Out (LIFO). You will need to calculate ending inventory from the purchase, sale and return data given, you may assume that a physical count confirmed your calculation of the number of units in ending inventory. 2. Assume that Bill decides to use the FIFO method and compute the lower of cost or market (LCM) value to be reported for the end of June, 2014. Use the last purchase prices for the market value. You only need to calculate cost under the FIFO method for this comparison. 3. Prepare the Cost of Goods Sold section of the Income Statement. 1) Average Cost Date Sample of how to fill out this page using Average Cost COST OF GOODS AVAILABLE FOR SALE Feed All Fertilizer Explanation Units Unit Cost COST OF GOODS AVAILABLE FOR SALE xxxxx Fertilizer Total Cost Date Explanation 6/15 6/28 Units Unit Cost Total Cost ENDING INVENTORY 177.50 10 25 35 $5.00 $5.10 ENDING INVENTORY $ Purchase Purchase Total COST OF GOODS SOLD /35 $ Cost of Goods Available for Sale COST OF GOODS SOLD Units Unit Cost Total Cost 11 $ 5.07 $55.77 $ 177.50 Less: Ending Inventory Cost of Goods Sold $5.07 $50.00 $127.50 177.50 $ $ 55.77 121.73 A good example is located on page 283 of your e-text (Illustration 6-6) COST OF GOODS AVAILABLE FOR SALE Weed and Feed All Fertilizer Date Explanation Units ENDING INVENTORY Unit Cost Total Cost COST OF GOODS SOLD 2) First-In, First-Out (FIFO) COST OF GOODS AVAILABLE FOR SALE Feed All Fertilizer Date Explanation Units Unit Cost Total Cost Sample of the EI and COGS calculation for FIFO or LIFO, Cost of Goods Available is the same as in the Average Cost sample above ENDING INVENTORY COST OF GOODS SOLD ENDING INVENTORY Date 6/28 Total COST OF GOODS AVAILABLE FOR SALE Weed and Feed All Fertilizer Date Explanation Units ENDING INVENTORY Unit Cost Total Cost COST OF GOODS SOLD 2) Last-In, First-Out (LIFO) COST OF GOODS AVAILABLE FOR SALE Feed All Fertilizer Date Explanation Units ENDING INVENTORY Unit Cost Total Cost COST OF GOODS SOLD COST OF GOODS AVAILABLE FOR SALE Weed and Feed All Fertilizer Date Explanation Units ENDING INVENTORY Unit Cost COST OF GOODS SOLD Total Cost Units 11 11 COST OF GOODS SOLD Unit Cost Total Cost 5.10 56.10 $ 56.10 Cost of Goods Available for Sale Less: Ending Inventory Cost of Goods Sold $ $ $ 177.50 56.10 121.40 Lower of Cost or Market (LCM) Sample of how to fill out the LCM sheet Item Cost Market LCM Item XXX Fertilizer YYY Fertilizer Total Inventory Cost Market LCM $ 150.00 $ 85.00 175.00 $ 150.00 79.00 ### $ 229.00 These numbers are total cost and market, not per unit A good example is located on page 290 of your e-text (Illustration 6-16) Sample of COGS section of Income Statement Cost of Goods Sold Inventory, June 1 Purchases Less: Purchase Returns and Allowances $0 Cost of Goods Purchased Cost of Goods Available for Sale Inventory, June 30 Cost of Goods Sold A good example is located on page 242 of your e-text (Illustration 5-B2) $0 $0 $0