same qyestion

D G H 2 5 Al JA Question 1 - Inventory (21 marks) B C E F 1 Question 1 - Inventory (21 marks) **Please only enter your response in the blue cells. This is the only area that will be graded + a) Inventory Cost Flows (12 marks) The following inventory transactions took place for Astra Corporation for the month of May. 7 Date Event Quantity Cost/Selling Price ($) 1-May Beginning Inventory 1,000 3.20 S-May Purchase 6,000 3.10 15-May Sale 4,000 6.00 12 17-May Purchase 5,000 4.25 3 9 30 11 13 Required: 14 1. Determine the May ending inventory balance for Astra Corporation, assuming the company uses a 15 perpetual inventory system and the weighted average (MWA) cost formula Enter your response in 116 the blue cells below. Round to 2 decimal places (6 marks) 17 18 Ending Inventory Balance (dollar value MWA - perpetual): 19 10 Workspace Purchases Cost of Goods Sold Date Units Unit Cost Total Cost Units Unit Cost Total Cost Inventory Value Unit Cost Total Cost Units 30 37 38 39 40 41 2. Determine the May ending inventory balance for Astra Corporation, assuming the company uses a periodic inventory system and the first-in, first-out cost formuia Enter your response in the blue cells below. (6 mark) Ending Inventory Balance (dollar value FIFO - periodic) 43 Workspace Units Extended Value Per Unit 44 45 Beginning inventory 46 Add Purchases 47 48 Total goods available for sale 49 Less Cost of Goods Sold SO 51 Ending inventory b) Inventory Errors (6 marks) Required: Indicate in each of the blue spaces provided below the effect of the described errors on the various elements of a company's financial statements. Assume a periodic inventory system and that all sales and purchases are on credit. 1. Goods in transit shipped "FOB destination" by a supplier were recorded as a purchase but were excluded from ending inventory. (3 marks) Account Effect of Error Ending Inventory Sales COGS 2. Goods in transit to a customer shipped "FOB shipping point" were not recorded as a sale and were included in ending inventory- (3 marks) Account Effect of Error Ending Inventory Sales COGS 7 c) Not Realizable Value (3 marks) S Blue Corporation had the following items in ending inventory as at December 31, 2020 Item AI B4 02 D3 Net Realizable Quantity Value Unit Cost 1,300 $ 8.40 $ 8.00 1900S 4.50 5.00 1900 12.905 12.00 1,600 10.90S 11.00 Assume that Blue Corp. uses a perpetual inventory system and that none of the inventory items can be grouped together for accounting purposes. Required: Record the journal entry necessary to adjust inventory to the lower of cost and net realizable value at December 31, using the direct method. (3 marks) Dato Account Titles Debit Credit 31-Dec