Required information P7-3 (Algo) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow LO7-2, 7-3 [The following information applies to the questions displayed below.) At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $17.60 per unit: Transactions Inventory, January 1 Purchase, January 12 Purchase, January 26 Units 660 630 190 (520) (200) Amount $3,168 4,284 1,672 Sale Sale P7-3 Part 1 Required: 1a. Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 1b. Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (C) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. (Round unit price to 2 decimal places. Input all amounts as positive values.) Average Cost Cost of Goods Sold Cost of Good Available for Sale Cost of Cost per Goods # of Units Unit Available for Sale # of Units Sold Cost per Unit Cost of Goods Sold Average Cost Cost of Goods Sold Cost of Good Available for Sale Cost of Goods # of Units Unit Available for Sale Cost per Cost per # of Units Sold Cost of Goods Sold Unit 660 $ 3,168 Beginning inventory Purchases: 630 $ 4,284 January 12 January 26 190 $ 1,672 $ 9,124 Total 1,480 $ 0 FIFO Cost of Goods Available for Sale Cost of Goods Sold Cost per # of Units Cost of Goods Available for Sale # of Units Sold Cost per Unit Cost of Goods Sold Unit Beginning inventory 660 4.80 $ 3,168 $ 0 Purchases: 630 6.80 $ 4,284 $ 0 January 12 January 26 190 $ 1,672 Total 1,480 $ 9,124 0 LIFO Cost of Goods Available for Sale Cost of Goods Sold Cost per Cost per # of Units Cost of Goods Available for Sale # of Units Sold Cost of Goods Sold Unit Unit Beginning inventory 660 $ 4.80 $ 3,168 Purchases: January 12 630 6.80 $ 4,284.00 January 26 190 Total 1,480 $ 7,452 0 Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Cost per # of Units Cost of Goods Available for Sale # of Units Sold Cost per Unit Cost of Goods Sold Unit Beginning inventory 660 $ 4.80 $ 3,168 Purchases: January 12 630 6.80 $ 4,284 January 26 190 Total 1,480 $ 7,452 0 $ 0 DONNER COMPANY Partial Income Statement For the Month Ended January 31, Current Year (a) (b) (c) (d) Specific Identification Average Cost FIFO LIFO Sales revenue Cost of goods sold Gross profit
