Required: 1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. 2. Using FIFO, calculate ending inventory and cost of goods sold at October 31. Ending inventory Cost of goods sold 3. Using LIFO, calculate ending inventory and cost of goods sold at October 31. Ending inventory Cost of goods sold 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31. (Round your intermediate and final answers to 2 decimal places.) Ending inventory Cost of goods sold Required: 1. Assuming that Bowser Co. uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list OX: 1 10 > Record purchase of 126 units of inventory on account from Waluigi Co. for $50 per unit, terms 2/10, n/30. 1. for $50 2 Record payment of cash for freight charges related to the October 4 purchase, $696. 3 Record return of 10 defective units from the October 4 purchase and receive credit. Credit 4 Record payment to Waluigi Co. in full. 5 inventory to customers on Record the sale of 156 units account, $12,480. 6 Record the cost of inventory sold. 7 Record receipt of full payment from customers related to the sale on October 15. 8 Record purchase of 96 units of inventory from Waluigi Co. for $66 per unit, terms 1/10, n/30. 9 Record the sale of 96 units of inventory to customers for cash, $7,680. Required information Problem 6-6A Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value (LO6-2, 6-3, 6-4, 6-5, 6-6) [The following information applies to the questions displayed below.) At the beginning of October, Bowser Co.'s inventory consists of 54 units with a cost per unit of $46. The following transactions occur during the month of October October 4 Purchase 126 units of inventory on account from Waluigi Co. for $50 per unit, terms 2/10, n/30. October 5 Pay cash for freight charges related to the October 4 purchase, $696. October 9 Return 10 defective units from the October 4 purchase and receive credit. October 12 Pay Waluigi Co. in full. October 15 Sell 156 units of inventory to customers on account, $12,480. [Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $6 per unit for freight less $1 per unit for the purchase discount, or $55 per unit. ] October 19 Receive full payment from customers related to the sale on October 15. October 20 Purchase 96 units of inventory from Waluigi Co. for $66 per unit, terms 1/10, n/30. October 22 Sell 96 units of inventory to customers for cash, $7,680. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on October 20.) Suppose by the end of October that the remaining inventory is estimated to have a net realizable value per unit of $35. Record any necessary adjustment for lower of cost and net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 3. Prepare the top section of the multiple-step income statement through gross profit for the month of October after the adjustment for lower of cost and net realizable value. BOWSER CO. Multiple-step Income Statement (partial) For the month of October
