i-Saved to my Mac eferences Mailings Review View Aav As T AaBbCc ABCDE AaBbceDdE AaBbCcI D A Heading 1 Heading 2 Normal Title es, fixes, and improvements, choose Check for Updates Problem 1 Bengals Company (the Company) has a December 31" fiscal year-end. The Company tracks inventory on a FIFO basis and reports inventory on a LIFO basis. After several years of industry growth, the economic impacts of the COVID-19 pandemic caused prices to fall industry wide. As of December 31, 2019, the Company had 360 units in inventory. The 2019 annual report contained the following inventory information: Inventory at FIFO $ 72,000 Less: LIFO Reserve ($ 18,000 Inventory at LIFO $ 54,000 During 2020, the Company had the following purchases: Purchases Table Units Value Unit Total Purchase 1 - 5/14/20 1,700 $185.00 $314,500 Purchase 2 - 7/24/20 2.100 S182.50 $383,250 Purchase 3 - 9/2/20 2,700 S181.50 S490,050 Purchase 4 - 11/20/20 400 $175.00 $ 70,000 A physical count on December 31, 2020 indicated that the Company had 1,010 units in ending inventory. Based on this information, calculate the following amounts for fiscal year 2020: FIFO Amounts Fiscal Year 2020 Sales (in units): Goods Available for Sale (units): I Goods Available for Sale (S): FIFO Ending Inventory (S): FIFO Cost of Goods Sold (S): Work: LIFO Amounts Fiscal Year 2020 Sales (in units): Goods Available for Sale (units): Goods Available for Sale (S): LIFO Ending Inventory (S): LIFO Cost of Goods Sold (S): Work: ed States) Focus F3 000 DOO F4 F5 o F7 F6 Dil FB DD $ % & 3 4 5 6 7 8 9 0 Di-Saved to my Mac erences Mailings Review View AaBbcodec ABCDE AaBbCel Heading 1 Heading 2 Normal Title No s fixes, and improvements, choose Check for Updates. Problem 1 (Continued) Bengals Company Balances: LIFO Reserve at December 31, 2020: Inventory Profit at December 31, 2020: Adjustment: Assuming the Company accounted for its inventory properly during the year, what entry did the Company make to adjust from FIFO to LIFO at the end of the year? Adjusting Journal Entry: 1 Weighted Average: Assume the Company is converting to weighted average inventory costing. If beginning inventory at average cost approximated FIFO inventory, what are 2020 Ending Inventory and Cost of Goods Sold? Weighted Average Ending Inventory (S): Weighted Average Cost of Goods Sold (S): Method Selection: Industry prices are expected to continue to decline for the next several years. If you were managing the Company, which inventory costing method would you choose and why? Inventory Costing Method: Why? d States) Focus 80 F3 OOD 000 F4 F5 F6 F7 DIN ES FO 610 $ % & # 3 4 5 6 7 8 9 0 R T Y U O 1- Saved to my Mac Mailings Review View vv AL AaBbCc AaBbCeDdE AaBbCcDdEe AaBbCel Heading 1 Heading 2 Normal Title improvements, choose Check for Updates. Problem 1 Steelers Retailers, Inc. (the Company) is in its second year of operations. The Company uses the retail inventory method to estimate ending inventory and cost of goods sold. The following data has been summan for 2020 (all amounts in S): Cost Retail January 1 Inventory 208.800 360,000 Purchases 2,112,000 4,062,500 Freight-in 32,760 Purchase Retums 46,560 91,000 Net Mackups 29,480 Net Markdowns 98,600 Abnormal Spoilage 12,200 26,500 Shrinkage (Normal) 8,360 Sales 4,084,500 Sales Returns 81,680 Employee Sales 13,500 *Employee Sales are recorded at the net selling price. Employees receive a 10% discount Required: Estimate ending inventory and cost of goods sold using the Average Cost Method. Use space for work. Place answers in the blanks below. I Est. Ending Inventory (@retail): Cost-to-retail Percentage: Est. Ending Inventory (@cost): Est. Cost of Goods Sold (@cost): Required: Estimate ending Inventory and cost of goods sold using the LIFO Retail Method. Use space for work. Place answers in the blanks below. Est. Ending Inventory (retail) Cost-to-retail Percentage: Est. Ending laventory (@cost): Est. Cost of Goods Sold (@cost): Focus 000 59 F4 F5 F6 F8 F7 &