Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 1,800 units at $25 Dec 10 900 units at $27 Dec 12 1,260 units Dec. 20 310 units at $29 Dec 14 1,080 units Dec 31 540 units a. Assuming that the perpadual inventory system is used, costing by the LIFO method, determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, If units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventary Unit Cost column Schedule of Cost of Goods Sold LIFO Method Prepaid Cell Phones Quantity Purchases Purchases Date Quantity Cost of Goods Sold Cost of Goods Sold Inventory Inventory Unit Inventory Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Cost Total Cost Dec 1 Dec 10 Dec 12 III DOO 000 0011 cod Dec 14 Dec 20 0 in the HIGHER cost th the cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column Schedule of Cost of Goods Sold UFO Method Prepaid Cell Phones Quantity Purchases Purchases Date Quantity Cost of Goods Sold Cost of Goods Sold Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Dec 1 Det 10 Accounting and field Inventory Quantity Triventory Unt Cost Dec 12 59 Do 10000 10000 Booli 100000 0800 Dec 14 Dec 20 o o Dec 31 Dec 31 Balances b. based upon the preceding data, would you expect the inventory to be higher or lower using the first tout method Periodic inventory by three methods: cost of goods sold C The units of an item available for sale during the year were as follows: Jan 1 Inventory 40 units at $124 Mar. 10 Purchase 40 units at $132 Aug. 30 Purchase 10 units at $138 Dec 12 Purchase 110 units at $140 There are 40 units of the item in the physical inventary at December 31. The periodic inventory system is used Determine the ending inventory cost and the cost of goods sold by three methods found interim calculations to one decimal and final answers to the nearest whole dolan Cost of Ending Inventory and Cost of Goods Sold Inventory Method Ending Inventory Cost of Goods Sold First in tout (FO) Latin, tout (LIFO) Weighted average cont Continuing Company Analysis--Amazon: Inventory turnover and Number of days' sales in Inventory Amazon.com, Inc is one of the largest Internet retailers in the world. Target Corporation is one of the largest value.priced general merchandisers operating in the United States. Target sells through nearly 1,800 brick-and-mortar stores and through the Internet. Amazon and target compete for customers across a wide variety of products, Including media, general merchandise, apparel, and consumer electronics Cost of goods sold and inventory Information from a recent annual report are provided for both companies as follows (in millions): Amaron Target Cost of goods sold $62,752 $51,160 Inventories Beginning of year 7,411 7.903 End of year 8,299 8,766 a. Compute the inventory turnover for both companies. Round all calculations to one decimal place Inventory Turnover Amazon.com Target b. Compute the number of day sales in Inventory for both companies. Use the values determined in Parts and assume a 365 day year. Round all calculations to one decimal place Number of Days Sales In Inventory Amazon.com days Target days c. Which company has the better inventory efficiency? d. What might explain the difference in Inventory efficiency between the two companies? 1. The sales team of Amazon is more efficient than the sales team of Target Corporation d. What might explain the difference in inventory efficiency between the two companies? 1. The sales team of Amazon is more efficient than the sales team of Target Corporation. 2. Target's merchandising strategy requires a more significant investment in inventory than Amazon's. 3. The profit margin of Amazon is much higher than that of Target Corporation. 4. Amazon is a much larger company than Target and has the resources to handle its funds in an efficient manner