Alternative Inventory MethodsGarrett Company has the following transactions during the months of April and May: DateTransactionUnitsCost/Unit April 1Balance500 17Purchase200$5.30 25Sale150 28Purchase100 5.80May 5Purchase250 5.30 18Sale300 22Sale50 The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.Instructions:1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:FIFO periodic Cost of Goods SoldEnding InventoryApril$ fill in the blank 1$ fill in the blank 2May$ fill in the blank 3$ fill in the blank 4FIFO perpetual Cost of Goods SoldEnding InventoryApril$ fill in the blank 5$ fill in the blank 6May$ fill in the blank 7$ fill in the blank 8LIFO periodic Cost of Goods SoldEnding InventoryApril$ fill in the blank 9$ fill in the blank 10May$ fill in the blank 11$ fill in the blank 12LIFO perpetual (Round your intermediate calculations to the nearest cent.) Cost of Goods SoldEnding InventoryApril$ fill in the blank 13$ fill in the blank 14May$ fill in the blank 15$ fill in the blank 16Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.) Cost of Goods SoldEnding InventoryApril$ fill in the blank 17$ fill in the blank 18May$ fill in the blank 19$ fill in the blank 20Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.) Cost of Goods SoldEnding InventoryApril$ fill in the blank 21$ fill in the blank 22May$ fill in the blank 23$ fill in the blank 242. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".AprilCost of Goods SoldEnding InventoryDifference$ fill in the blank 25$ fill in the blank 26MayCost of Goods SoldEnding InventoryDifference$ fill in the blank 27$ fill in the blank 28

"Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for you. To get remaining sub-parts solved, please repost the complete question and mention the sub-parts to be solved."The inventory can be valued using various methods as LIFO, FIFO and weighted average method.Part 1. FIFO Periodic: Cost of goods available for sale (April) = 500 * $5 + 200 * $5.30 + 100 * $5.8= $4,140 Cost goods sold = 150 * 5 = $750 Ending inventory (April) = 4,140 – 750 = $3,390 Cost of goods available for sale (may) = 3,390 + 250 * $5.3 = $4,715 Cost of goods sold = 350 * $5 = $1,750 Ending inventory = 4,715 – 1,750 = $2,965 Part b. Using FIFO Perpetual, For April, Cost of goods sold = 150 * $5 = $750 Ending inventory = 350 * $5 + 200 * 5.3 + 100 * 5.8 = $3,390 For May, cost of goods sold = 300 * $5 + 50 * $5 = $1,750 Ending inventory = 200 * 5.3 + 100 * 5.8 + 250 * 5.3 = $2,965 Part c. Using LIFO periodic, For April, cost of goods sold = 50 * $5.3 + 100 * 5.8 = $845 Ending inventory = 500 * 2 + 150 * 5.3 = $1,795 For May, Cost of goods sold = 250 * 5.3 + 100 * 5.3 = $1,855 Ending inventory = 500 * 2 + 50 * 5.3 = $1,265

Answered: Alternative Inventory Methods Garrett…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alternative Inventory Methods

Garrett Company has the following transactions during the months of April and May:

Date	Transaction	Units	Cost/Unit

April 1	Balance	500
17	Purchase	200	$5.30
25	Sale	150
28	Purchase	100	5.80
May 5	Purchase	250	5.30
18	Sale	300
22	Sale	50

The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.

Instructions:

1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:

FIFO periodic

Cost of Goods Sold Ending Inventory

April $ fill in the blank 1 $ fill in the blank 2

May $ fill in the blank 3 $ fill in the blank 4
FIFO perpetual

Cost of Goods Sold Ending Inventory

April $ fill in the blank 5 $ fill in the blank 6

May $ fill in the blank 7 $ fill in the blank 8
LIFO periodic

Cost of Goods Sold Ending Inventory

April $ fill in the blank 9 $ fill in the blank 10

May $ fill in the blank 11 $ fill in the blank 12
LIFO perpetual (Round your intermediate calculations to the nearest cent.)

Cost of Goods Sold Ending Inventory

April $ fill in the blank 13 $ fill in the blank 14

May $ fill in the blank 15 $ fill in the blank 16
Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.)

Cost of Goods Sold Ending Inventory

April $ fill in the blank 17 $ fill in the blank 18

May $ fill in the blank 19 $ fill in the blank 20
Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)

Cost of Goods Sold Ending Inventory

April $ fill in the blank 21 $ fill in the blank 22

May $ fill in the blank 23 $ fill in the blank 24

2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".

April	Cost of Goods Sold	Ending Inventory
Difference	$ fill in the blank 25	$ fill in the blank 26
May	Cost of Goods Sold	Ending Inventory
Difference	$ fill in the blank 27	$ fill in the blank 28

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