Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Units 1 80 Unit Cost $26 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 account. March 2 b. Cash sale, April 1 (542 each) C. Purchase on account, June 30 d. Cash sale, August 1 (542 each) 2 90 (330) 230 (55) 28 32 TIP: Although the purchases and sales are listed in chronological order. Scrappers determines purchases have occurred. f goods sold after all of the Required: so 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) o. Last-in, first-out. b. Weighted average cost. c. First-in, first-out. d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this queston by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 1D Reg 2A Reg 2B a. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the UFO method. (Round "Cost per Unit anwers to 2 decimal places.) LIFO (Periodic) Units Cost per 1800 $ 20.00 $ 4.90 2907 $28.00 230 $ 32.00 520 15,480 700 20.160 Beginning Inventory Purchases March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase Units from June 30 Purchase Total Cost of Goods Sold Ending Inventory of $ $ 1901 $ 190 2600 28.00 32.00 Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31 Units 180 Unit Cost $26 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 (542 each) c. Purchase on account, June 30 d. Cash sale, August 1 (542 each) 290 (330) 230 TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) o. Last-in, first-out b. Weighted average cost. c. First-in, first-out. d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four.fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 1D Reg 2A Reg 2B b. Compute the cost oroods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the Weighted average method. (Round "Cost per Unit" anwers to 2 decimal places.) Weighted Average Cost (Periodic) Cost per Total Unit Beginning Inventory Purchases March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Ending Inventory $ Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Unit Cost Units 180 $26 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($42 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($42 each) 290 28 (330) 230 (55) TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) a. Last-in, first-out. b. Weighted average cost. c. First-in, first-out. d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 1C Reg 1D Reg 2 Reg 28 AN C. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the FIFO method. (Round "Cost per Unit" anwers to 2 decimal places.) FIFO (Periodic) Cost per Unit Total Units L Beginning Inventory Purchases March 2 0 13 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase Units from June 30 Purchase Total Cost of Goods Sold Ending Inventory 1 0 Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31 Units 180 Unit Cost $26 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 (542 each) C. Purchase on account, June 30 d. Cash sale, August 1 (542 each) 28 290 (330) 220 (55) TIP: Although the purchases and sales are listed in chronological order. Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) a. Last-in, first-out b. Weighted average cost. c. First-in, first-out. d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Reg 1A 1B Req1C Reg 10 Reg 2A Reg 28 d. Compute the cost of goods available for sale. Fost of ending inventory, and cost of goods sold at December 31 using the Specific identification method. Assume that the Ati 1 sale was selected one-fifth from the beginning inventory and four fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. (Round "Cost per Unit" anwers to 2 decimal places.) Show less Specific Identification (Periodic) Units Cost per Unit Total Bogining Inventory Purchases 0 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning inventory Uits froen March 2 Purchase Units from June 30 Purchase Total cost of Goods Sold Ending Inventory Prey 4 of 17 Next CP7-1 Analyzing the Effects of Four Alternative Inventory Costing Methods [LO 7-3) Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Units 180 Unit Cost $ 26 ory Lanuary Transactions Beginning inventoryJanuary 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 (542 each) C. Purchase on account, June 30 d. Cash sale, August 1 (542 each) 290 (330) 230 (55) TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) a. Last-in, first-out. b. Weighted average cost. c. First-in, first-out. d. Specific dentification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this question by entering your answers in the tabs Req 1A Reg 1B Req 10 R eg 1D Reg 2A of the four methods, which will result $ Last-in, first-out Weighted average cost OFirst-in, first-out Specific identification Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Units 1 80 Unit Cost $26 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($42 each) c. Purchase on account, June 30 d. Cash sale, August 1 (542 each) 290 (330) 230 (55) TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) o. Last-in, first-out. b. Weighted average cost. c. First-in, first-out. d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30, 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C rea Which will result in the lowest income taxes? Last-in, first-out Weighted average cost OFirst in, first-out Specific identification

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 15 - Liability Tricks

Authors: Kate Mooney

2nd Edition

0071719377, 9780071719377

More Books

Students also viewed these Accounting questions

Question

define and assess job burnout, boredom at work and work engagement;

Answered: 1 week ago

Question

years ago. d Only using studies which feature empirical data.

Answered: 1 week ago