Intermediate Accounting I Fall 2020 Handout Problem #8 (for Chapter 8) Your company had the following chronological inventory transactions during 2019 and 2020: 2019 Beginning Inventory 20 units Purchased 80 units Sold 77 units cost = $20.00 per unit cost = $21.00 per unit selling price = $45.00 per unit cost = $21.60 per unit selling price = $46.00 per unit cost = $22.00 per unit Purchased 60 units Sold 61 units Purchased 15 units Ending Inventory 37 units 37 units 2020 Beginning Inventory Purchased 90 units Sold 86 units ending inventory from 2019 cost = $22.40 per unit selling price = $47.00 per unit cost = $23.00 per unit selling price = $48.00 per unit Purchased 72 units Sold 74 units Ending Inventory 39 units INSTRUCTIONS: A. Calculate the value of Ending Inventory which would appear on the balance sheet for EACH year using each of the following methods. Please show your work for the 37 units of 2019 and your work for the 39 units of 2020. Round all costs per unit to two decimals and show your final answer to the nearest penny. 1. Periodic FIFO for 2019 and then for 2020 2. Periodic LIFO for 2019 and then for 2020 3. Periodic Average for 2019 and then for 2020 4. Perpetual FIFO for 2019 and then for 2020 5. Perpetual LIFO for 2019 and then for 2020 6. Perpetual Average for 2019 ONLY (because this takes too long for two years) B. Show the journal entries for the first purchase and the first sale in 2019 assuming the transactions were both on account using the following inventory methods: 1. Perpetual LIFO 2. Periodic Average