Wildhorse Co. reports the following for the month of June Unit Cost Total Cost $1,480 $4 Units June 1 Inventory 370 12 Purchase 740 23 Purchase 555 30 Inventory 185 7 5,180 10 5,550 Calculate Weighted Average Unit Cost. (Round answer to 2 decimal places, es, 15.25.) Weighted Average Unit Cost $ Compute the cost of the ending inventory and the cost of goods sold using the average-cost method. (Round answers to decimal places, es 1.2501 The ending inventory The cost of goods sold 5 Type here to search OD * a W Will the results in (a) be higher or lower than the results under FIFO and LIFO? Ending inventory is than FIFOS and than LIFOS In contrast, cost of goods sold is than FIFOS and than LIFOS The cost of goods sold computations for Martinez Company and Marigold Company are shown below. Martinez Company Marigold Company Beginning inventory $46,500 $ 75,000 194,500 300,000 Cost of goods purchased Cost of goods available for sale Ending inventory 241,000 375,000 57,500 69,000 Cost of goods sold $183,500 $306,000 Compute inventory turnover for each company. (Round answers to 2 decimal places, e.8. 15.25.) Martinez Company Marigold Company Inventory turnover Compute days in inventory for each company. (Round answers to decimal places, eg. 1,250, Use 365 days for calculation) Martinez Company Marigold Company Days in inventory days days Which company moves its inventory more quickly? The management of Blue Spruce Corp. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2020 if either the FIFO or the LIFO method had been used. For 2020, the accounting records show these data: Inventories $ 21,000 Purchases and Sales Total net sales ( 270,000 units) Total cost of goods purchased (285,000 units) Beginning (10,500 units) Ending (25,500 units) $1,120,500 642.000 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 1 75,000 $2.00 $ 150,000 2 60,000 2.15 129.000 3 60.000 2.30 138,000 4 90,000 2.50 225.000 285,000 $ 642.000 Operating expenses were $ 130,000, and the company's income tax rate is 40% 2 For the Year Ended December 31, 2020 FIFO LIFO Sales Revenues $ Cost of Goods Sold Beginning Inventory Cost of Goods Purchased Cost of Goods Available for Sale v Ending Inventory Cost of Goods Sold > Gross Profit/(Loss) Operating Expenses Income before Income Taxes Income Tax Expense = Income Tax Expense Net Income/(Loss) e Textbook and Media Answer the following questions for management. 1 (1) (2) Which cost flow method (FIFO or LIFO) produces the more meaningful inventory amount for the balance sheet? Which cost flow method (FIFO or LIFO) produces the more meaningful net income? Which cost flow method (FIFO or LIFO) is more likely to approximate the actual physical flow of goods? How much more cash will be available for management under LIFO than under FIFO? (3) $ (5) Will gross profit under the average-cost method be higher or lower than FIFO? Will gross profit under the average-cost method be higher or lower than LIFO