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Part 3A (36 points) The following 2 problems are independent and unrelated. SPRING 2022 NOT INCLUDED Problem A: Happy Foods, a chain of retail grocery

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Part 3A (36 points) The following 2 problems are independent and unrelated. SPRING 2022 NOT INCLUDED Problem A: Happy Foods, a chain of retail grocery stores, uses a LIFO Reserve account to adjust inventory amounts from its internal accounting records, maintained using the FIFO cost method, to the amounts reported on its financial statements using the LIFO cost method. The following information is available: 12-31-21 12-31-20 Inventory (at FIFO cost) $ 820,000 $540,000 Less: LIFO Reserve (121.000) 83.000) Inventory (at LIFO cost) $ 699,000 $ 457,000 Cost of goods sold (LIFO) $2,462,000 $1,879,000 Required: Determine the amount of 2021 COGS if the FIFO cost method had been used. Show computations. Problem B: Boomer Co. began business in 2021 and adopted the LIFO cost method with a periodic inventory system. 2021 inventory information is as follows: 2021 sales: 15,000 units @ $95 2021 purchases in chronological order: 3,000 units @ $42 $126,000 8,000 units @ $45 360,000 9.000 units @ $48 432.000 20,000 $918,000 Requirement 1: Compute 2021 COGS using LIFO cost with periodic system. Show all computations. SPRING 2022 INCLUDED ON EXAM 3 Requirement 2: On January 1, 2022, Boomer changed from the LIFO cost method to the average cost method. If the average cost method had been used in 2021, 2021 COGS would have been $688,500. On January 1, 2022, what entry did Boomer record for the change in inventory method? Show all computations. Part 3A (36 points) The following 2 problems are independent and unrelated. SPRING 2022 NOT INCLUDED Problem A: Happy Foods, a chain of retail grocery stores, uses a LIFO Reserve account to adjust inventory amounts from its internal accounting records, maintained using the FIFO cost method, to the amounts reported on its financial statements using the LIFO cost method. The following information is available: 12-31-21 12-31-20 Inventory (at FIFO cost) $ 820,000 $540,000 Less: LIFO Reserve (121.000) 83.000) Inventory (at LIFO cost) $ 699,000 $ 457,000 Cost of goods sold (LIFO) $2,462,000 $1,879,000 Required: Determine the amount of 2021 COGS if the FIFO cost method had been used. Show computations. Problem B: Boomer Co. began business in 2021 and adopted the LIFO cost method with a periodic inventory system. 2021 inventory information is as follows: 2021 sales: 15,000 units @ $95 2021 purchases in chronological order: 3,000 units @ $42 $126,000 8,000 units @ $45 360,000 9.000 units @ $48 432.000 20,000 $918,000 Requirement 1: Compute 2021 COGS using LIFO cost with periodic system. Show all computations. SPRING 2022 INCLUDED ON EXAM 3 Requirement 2: On January 1, 2022, Boomer changed from the LIFO cost method to the average cost method. If the average cost method had been used in 2021, 2021 COGS would have been $688,500. On January 1, 2022, what entry did Boomer record for the change in inventory method? Show all computations

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