Problem 5-20B

Prepare the Year 3 income statement, balance sheet, and statement of cash flows under FFO. b. Prepare the Year 3 income statement, balance sheet, and statement of cash flows under FFe, LiFO, and weighted ing the statements.) Problem 5-218 Inientory valuation based on the lowemof-cost-om-market rute b. Prepare the Year 3 income statement, balaned sheet, and statement of cash flows under FiFo LIFO, and weighted averige. (Hint Rocont the events under an accounting equation before pitpes: ing the statements.) Problem 5-20B Allocating product costs between cost of goods sold and ending imentory: intermittent purchases and sales of merchandise Dongvan. Inc, had the follosing sales and purchase transactions during Year 2. Beginning inventun consisted of 120 items at $80 each. Donoyan uses the FHO cost flow assumption and keeps perpetal inventory records. Required a. Hecord the inventory transetions in a financial statements model. b. Calculate the gross margin Donovan would report on the Year 2 income statement. c. Determise the endine inventory balance Donovan would report on the December 3. Year 2 bulance sheet. Problem 5-218 Inremfory waluation based on the lowerof-cost-ormarket rufe At the end of the year, Ronaldo Jewelers had the following itemis in inventory: Tlow, and (3) weighted-average cost frow. Compute the incomo tat expense for each method. b. Prepare the Yeat 3 income siasement, balance sheet, and statement of cash flous under Hifo LIFO, and weighied averige. ( Hint Reend the events under an accounting equation before Frpe ing the statements.) Problem 5-20B Allocating product costs behween cost of goods sold and end invemtoryt infermitteat purchasses and sales of merchandise Donovan, Inc. had the following sales and purchase trankstions during Year 2 . Heginn consisted of 120 items at $80 cach. Donowan uses the FIFO cost flow assimption and kee inventocy reconts. Required a. Recond the inventory thanuctions in a financial statements model. b. Calculate the gross margin Donovin would report on the Year 2 income slatement. c. Determine the ending inventory balance Donovan woujd repott on the December 31, Year 2 bialance sheet. Problem 5-218 Inientory waluation based on the lowemofeasf-armanket rwle At the end of the year, Ronaldo Jewelen had the following inems in inventory: Problem 5-20B Allocating product costs between cost of goods sold and ending imventory: intermittent purchases and sales of merchandise Donovan, Inc, had the following sales and purchase transactions during Year 2. Beginning inventan consisted of 120 items at $80 each. Donovan uses the FIFO cost flow assumption and keeps perpetail inventory records. Required a. Record the invertitory transactions in a financial statements model. b. Calculate the gross margin Donovan would report on the Year 2 income statement. c. Determine the ending inventory balance Donovan would report on the December 31 , Year 2 . balance sheet