N O P co GHK L M GROUP PROBLEM CHAPTER 8 (Compute FIFO, LIFO, and Averge Cost-Periodic and LIFO and averge cost Perpetual). Presented below is Information related to Product A of Prince Company for the month of July Units Unit Units Selling Date Transaction in Cost Total Sold Price Total 711 Balance 100 $ 4.10 $ 410 Purchase 800 4.21 3,368 Sale $ 2.100 Sale 2,190 Purchase 400 4.54 1.816 Sale 79 Purchase 4.60 1.380 Sale 2,060 Purchase 500 4.70 2,350 Sale 1,500 $ 10,230 Assuming that the periodic Inventory system is used, compute the inventory cost at July 31 under the FIFO, LIFO and average cost cost flow assumptions. (Show all computations on the template on the blackboard) Which of the following cost flow assumptions above will yield the highest gross profit for the income statement in Part A and explain why Include the preparation of the income statement through gross profit for all three methods. Which of the following cost flow assumptions above will yield the lowerst ending inventory for the balance sheet? and explain why? Complete the Perpetual Schedule for LIFO and Average Cost applying the facts above. Compute the income statement through the gross profit for Perpetual Life and Perpetual Avg. Cost Explain the reason for the differnces in the computation of the ending Inventory and gross profit in Part A and B for LIFO and Average Cost compared to the ending inventory and gross profit using the perpetual Inventory syatem, (Post the completed template on the blackboard under the Group Solutions Sheet1 Sheet2 Sheet3 + Ready Paste BIU- J86 x f x =SUM(H86*186) D E F G 1 Part A. FIFO 15 Part A. LIFO Part A. Average Cost A J SUHOU TU) D E F G L M N O P a Part B FIFO LIFO Averag Cost Sales Cost of Goods Sold" Gross Profit *Cost of Goods Sold Computi Sheet1 Sheet2 Sheets Ready Wrap Text . Calibri (Body) . 11 B IV . E . AA A Custo $. Paste - Merge & Center E QTY Unit Cost Inventory on hand Total Cost VALUEI VALUE VALUE! - . $ . . S . S . VALUE 186 X f x SUM(H86*186) A B C D E 83 D. Lifo Perpetual System 84 Purchases Cost of goods sold 85 Date QTY Unit Cost Total Cost QTY Unit Cost Total Cost 867/1 87 17/6 - 88 7/6 - 89 7/7 90 91 7/10 92 7/10 93 7/12 94 7/12 95 7/12 96 7/15 97 7/15 . 98 7/15 . . 99 7/18 1007/18 1017/18 102 7/18 103 7/22 104 7/22 10S 7/22 106 7/25 107 7/25 108 7/25 109 1/25 1107/30 111 7730 1127/30 113 7730 114 . S . - S - S . LU S . 118 Totals OS Sheet1 Sheet2 Sheet3 + Ready esc 5 % Wrap Text Custo $ . - Merge & Center Home Insert Page Layout Formulas Data Review View * Calibri (Body) 11 Paste BIU 36 x fx =SUM(H86*186) D. Average Cost - Perpetual System 11 Purchases Cost of goods sold Inventory on hand 2 Date QTY Unit Cost Total Cost QTY Unit Cost Total Cost QTY Unit Cost 317/1 IS Total Cost S- AVALUEI S - T WALUEI . . S S $ - . - UVALUEI 26 7/10 27 7/12 28 7/15 29 7/18 307/22 31 7/22 132 7/25 33 7/30 . IVALUEI . $ $ $ $ - . . . AVALUEI - - . - . S . 135 136 Total 137 138 141 142 E. 143 Average LIFO 145 Sales 146 Cost of Goods Sold 147 Gross Profit 149 F. 150 Sheet1 Sheet2 Sheet3 Ready