Monitor Industries, Inc., completed the following inventory transactions during the month of March (Click the loon to view the transactions.) Data table Requirements Date Item 1 Balance Mar 1. Without resorting to calculations, determine which inventory method will result in Monitor Industries, Inc., paying the lowest income taxes 2. Prepare a perpetual inventory record using EIE 3. Prepare a perpetual inventory record using LIFO 4. Prepare a perpetual inventory record using average cost. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar 4 Purchase 12 Sale 22 Purchase 31 Sale Quantity Unit Cost 10$ 85 70$ BB 75 26 $ 90 24 Requirement 1. Without resorting to calculations, determine which inventory method will result in Monitor Industries, Inc., paying the lowest income taxes. In times of inventory prices, as is the case here, the method will result in Monitor Industries, Inc., paying the lowest Income taxes. Requirement 2. Prepare a perpetual inventory record using FIFO. Start by entering the beginning inventory balances. 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 inventory purchased, sold, and on hand at the end of the period. (For cost of goods sold, enter the first layer out under FIFO costing first. For inventory on hand, enter the oldest inventory layer first.) Purchases Cost of goods sold Inventory on hand Unit Total Unit Total Unit Total Date Qty Cost Cost Qty Cost Qty Cost Cost Mar Cost 1 Mar 4 Mar 12 Mar 22 Mar 31 Total Requirement 3. Prepare a perpetual inventory record using LIFO. Start by entering the opening inventory balance. 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 inventory purchased, sold, and on hand at the end of the period. (For cost of goods sold, enter the first layer out under LIFO costing first. For inventory on hand enter the oldest inventory layer first.) Purchases Cost of goods sold Inventory on hand Unit Total Unit Total Unit Total Date Cost Cost Qty Cost Cost Qty Cost Cost Qty Mar 1 Mar 4 Mar 12 Mar 22 Mar 31 Total Start by entering the opening inventory balance. 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 inventory purchased, sold, and on hand at the end of the period. (Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Purchases Cost of goods sold Inventory on hand Unit Total Unit Total Unit Total Date Qty Cost Cost Qty Cost Qty Cost Cost Cost Mar 1 Mar 4 Mar 12 Mar 22 31 Mar Total UL
