4 12 22 opening inventory balance. Enter the fansactions Cost of goods sold Unit Cost Purchases Unit Oty Cost Total Cost Cost Inventory on hand Qty Cost Total
4 12 22 opening inventory balance. Enter the fansactions Cost of goods sold Unit Cost Purchases Unit Oty Cost Total Cost Cost Inventory on hand Qty Cost Total
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PA: The beginning inventory for Funky Party Supplies and data on purchases and sales for a three-month...
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![Requirement 4. Prepare a perpetual inventory record using average cost. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.
Start by entering the opening inventory balance. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.
Purchases
Cost of goods sold
Inventory on hand
Unit
Total
Unit
Total
Unit
Total
Date
Qty
Cost
Cost
Qty
Cost
Cost
Qty
Cost
Cost
Mar
1
Mar
4
Mar
12
Mar
22
Mar
31
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febb4fe4b-6528-4815-8f2b-178dd3c3d83d%2F8f8ecfa0-5e06-4287-80f8-fefbbfce80cc%2F3mnygxb_processed.png&w=3840&q=75)
Transcribed Image Text:Requirement 4. Prepare a perpetual inventory record using average cost. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.
Start by entering the opening inventory balance. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.
Purchases
Cost of goods sold
Inventory on hand
Unit
Total
Unit
Total
Unit
Total
Date
Qty
Cost
Cost
Qty
Cost
Cost
Qty
Cost
Cost
Mar
1
Mar
4
Mar
12
Mar
22
Mar
31
Total
![Laptop Industries, Inc., completed the following inventory transactions during the month of March:
E (Click the icon to view the transactions.)
Read the requirements.
...
Requirement 1. Without resorting to calculations, determine which inventory method will result in Laptop Industries, Inc., paying the lowest income taxes.
In times of
inventory prices, as is the case here, the
method will result in Laptop Industries, Inc., paying the lowest income taxes.
Requirement 2. Prepare a perpetual inventory record using FIFO.
Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (For cost of goods sold, enter the first layer out under FIFO costing first. For inventory on
hand, enter the oldest inventory layer first.)
Purchases
Cost of goods sold
Inventory on hand
Data table
Requirements
Unit
Total
Unit
Total
Unit
Total
Date
Qty
Cost
Cost
Qty
Cost
Cost
Qty
Cost
Cost
Mar
Quantity
1. Without resorting to calculations, determine which inventory method will result in
Laptop Industries, Inc., paying the lowest income taxes.
Date
Item
Unit Cost
Mar
4
Mar
1 Balance
25 $
80
2. Prepare a perpetual inventory record using FIFO.
4 Purchase
50 $
78
3. Prepare a perpetual inventory record using LIFO.
Mar
12
12 Sale
52
4. Prepare a perpetual inventory record using average cost. Round average cost per
unit to the nearest cent and all other amounts to the nearest dollar.
22 Purchase
37 $
77
Mar
22
31 Sale
35
Mar
Print
Done
Print
Done
Total
Requirement 3. Prepare a perpetual inventory record using LIFO.
Start by entering the opening inventory balance. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (For cost of goods sold, enter the first layer out under LIFO costing first. For inventory on hand,
enter the oldest inventory layer first.)
Purchases
Cost of goods sold
Inventory on hand
Unit
Total
Unit
Total
Unit
Total
Date
Qty
Cost
Cost
Qty
Cost
Cost
Qty
Cost
Cost
Mar
1
Mar
Mar
12
Mar
22
Mar
31
Total
31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febb4fe4b-6528-4815-8f2b-178dd3c3d83d%2F8f8ecfa0-5e06-4287-80f8-fefbbfce80cc%2F4qed6k5_processed.png&w=3840&q=75)
Transcribed Image Text:Laptop Industries, Inc., completed the following inventory transactions during the month of March:
E (Click the icon to view the transactions.)
Read the requirements.
...
Requirement 1. Without resorting to calculations, determine which inventory method will result in Laptop Industries, Inc., paying the lowest income taxes.
In times of
inventory prices, as is the case here, the
method will result in Laptop Industries, Inc., paying the lowest income taxes.
Requirement 2. Prepare a perpetual inventory record using FIFO.
Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (For cost of goods sold, enter the first layer out under FIFO costing first. For inventory on
hand, enter the oldest inventory layer first.)
Purchases
Cost of goods sold
Inventory on hand
Data table
Requirements
Unit
Total
Unit
Total
Unit
Total
Date
Qty
Cost
Cost
Qty
Cost
Cost
Qty
Cost
Cost
Mar
Quantity
1. Without resorting to calculations, determine which inventory method will result in
Laptop Industries, Inc., paying the lowest income taxes.
Date
Item
Unit Cost
Mar
4
Mar
1 Balance
25 $
80
2. Prepare a perpetual inventory record using FIFO.
4 Purchase
50 $
78
3. Prepare a perpetual inventory record using LIFO.
Mar
12
12 Sale
52
4. Prepare a perpetual inventory record using average cost. Round average cost per
unit to the nearest cent and all other amounts to the nearest dollar.
22 Purchase
37 $
77
Mar
22
31 Sale
35
Mar
Print
Done
Print
Done
Total
Requirement 3. Prepare a perpetual inventory record using LIFO.
Start by entering the opening inventory balance. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (For cost of goods sold, enter the first layer out under LIFO costing first. For inventory on hand,
enter the oldest inventory layer first.)
Purchases
Cost of goods sold
Inventory on hand
Unit
Total
Unit
Total
Unit
Total
Date
Qty
Cost
Cost
Qty
Cost
Cost
Qty
Cost
Cost
Mar
1
Mar
Mar
12
Mar
22
Mar
31
Total
31
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