intermediate Accounting.
B 1 Question One-- Moving Average Inventory Method 2 During 2020, Paraphet Industries had the following transactions pertaining to inventory item 91c (raised planter 3 boxes): 4 5 Date Actrit Quantity Lnit Price 1-Jan Beginning 6 Inventory 100 S 84 7 31-Mar Sold 60 8 29 Jun Purchased 60 87 9 30-Jun Sold 75 10 29-Sep Purchased 25 88 11 31-Dec Sold 40 12 13 14 Inventory Record 15 Item # Description 16 Purchases Cost of Goods Sold Inventory on Hand 17 Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Cost Total Cost 18 1-Jan 19 31-Mar 20 29-Jun 21 30-Jun 22 29 Sep 23 31 Dec 24 Total 25 Assume that Paraphet Industries sold each of the planter boxes at a unit sales price of $135.00 throughout the year and compute the 26 company's gross profit related to sales of inventory item 91c. 27 Sales Revenue 28 COGS Moving AVG S LIFO Table (1) SUFO Table (2) 17 Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Cost Total Cost 18 1-Jan 79 31 Mar 20 29-Jun 21 30-Jun 22 29-Sep 23 31-Dec 24 Total 25 Assume that Paraphet Industries sold each of the planter boxes at a unit sales price of $135.00 throughout the year and compute the | 26 company's gross profit related to sales of inventory item 910. 27 Sales Revenue 28 COGS 29 Gross Profit 30 Book Paraphet Industries December 31st journal entries to record sales revenue and cost of goods sold related to inventory item 91c, the raised planter box. Cash has already been collected for the March 31st and June 30th sales. The receivable for the December 31st 31 sale is still outstanding. 32 33 34 35 36 37 3B 39 40 41 Moving AVG S LIFO Table (1) S LIFO Table (2) 2017 106 D H M N P 1 Question Two-Dollar-Value UFO The following information pertains to Paraphet Industries'inventory. Paraphet keeps perpetual inventory records using the FIFO method and then uses the dollar-value 2 LIFO method to convert these inventory records for reporting purposes. 3 4 Beur due non Price Index 5 2016 $ 324,000 100 6 340,080 104 7 2018 345,560 0 2019 370,600 109 9 2020 360,750 111 10 11 Inentory ar End Lanterar Base Price Indre Lansar Dollar ZIRO 12 ar of You Fices lotutorta Bus Tour Price LINO Cout 1 LINO Resepte EOY Price Base Year Price 13 Inventory Index Pyke Yea Layer Mice 38 Indes LIFO Cost 14 15 2016 16 17 11 2017 19 20 21 2018 22 23 24 3019 25 26 27 2020 28 29 30 Moving AVG S LIFO Table (1) Sur Table 21 D B A Record Paraphet Industries December 31st, 2020 journal entry to adjust the company's LIFO reserve to its target balance. Hint: Paraphet's LIFO reserve already had a balance at the beginning of 2020; the adjusting entry should only be for the amount necessary to increase or decrease the LIFO reserve balance from its beginning 1 balance to the necessary amount at the end of 2020. 2 3 4 5 6 Paraphet Industries elects to report its inventory "net." In other words, the company reports only the LIFO amount but discloses information about its inventory's FIFO value in the notes to the balance sheet. Determine what inventory balance Paraphet would disclose on its financial statement and write a note to inform users of 8 Paraphet's financial information about the FIFO value of the company's inventory. 9 10 Paraphet Industries 11 Balance Sheet (Partial) 12 December 31, 2020 13 Inventory, net (a) 14 Notes to Balance Sheet: 15 16 17 18 19 20 27 22 23 Moving AVG LIFO Table (1) $ LIFO Table (2)
