zone entSessionLocators:Binprogress-false Mastery Problem: Inventories Changing Prices Changing Prices Inventory Records Final Questions You work for a CPA firm that has been hired by Widget Tok, a merchandising company that is getting ready to expand. The president of Widget Tok is concerned with ottaning alan for the expansion and wants to be sure that all the financial statements accurately reflect the company's accounting records. As preparation for this assignment, you have been asked to review the effects of changing prices on three inventory coating method LEO, DEO, and white CREA00 Identify the scenarios and inventory methods that result in the highest and lowest values for each com isted Enter Highest Lower or love the box blank Cost of Mechandise Sold Ending Merchandise Inventory Net Income LIFO, when prices are falling Weighted average, when prices are talling FIFO, when prices are rising FIFO, when prices are falling LIFO, when prices are rising Weighted average, when prices are rising Inventory Records Widget Tek's original accountant accepted a position with another firm and left in early March You have been asked to review the day. Becaer record for Widget Timah product for March Inventory Records Widget Tok's original accountant accepted a position with another form and lot in ewy wch. You have been asked to review the record for Women product for March Date Mar. 1 Quantity 850 1,275 Inventory Unit Cost $98.00 95.00 9800 98.00 98.00 103.00 Mar 8 650 Total Cost $83.300 121.125 63.700 31,850 31,850 80,340 Mar. 11 325 Mar. 14 325 780 Mar. 22 260 98.00 98.00 Mar. 25 200 25.480 25.480 181,800 1.800 101.00 Study the inventory record for March and answer the questions that follow 1. Assuming that the product sells for $170 and that 70% of sales are on account determine the gross protetom sales for March 2. Making the same assumptions as in (1), determine the ending inventory cost for March 3. Which inventory method is being used? HEETAL... HEETAL... HEET.AL... Study the wintory record for March and answer the questions that follow 1. Assuming that the protetor 5170 and that 70% of a won account, the grous profesionales for March 2. Making the same assumption as in termine e ending invertory cour March 3. Which inventory method is being used? Final Questions In conversation with the president of Widget Tel. you have learned that much of the company's merchandise voy consists of Went To The motor less than the newer Widget Tek models, but customers are the models. The company believe that the momentary than its value in the subsidiary wory Considering all of the information you have about Waper Fok, arowerofotong store 1. To better account for the older merchandise inventory. The president of Widget Yok wonder where the toy would be at ang at Day agres, and why or why not? because 2. We a change in informed increase a company's net income on its francia arty? 3. When is merchandise invertory not valued cost? Previous