Alternative Inventory Methods Garrett Company has the following transactions during the months of April and May: Date Transaction Units Cost/Unit April 1 Balance 300 17 Purchase 200 $5.20 25 Sale 150 28 Purchase 100 5.70 May 5 Purchase 250 5.20 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. Required: 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

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	300
17	Purchase	200	$5.20
25	Sale	150
28	Purchase	100	5.70
May 5	Purchase	250	5.20
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.

Required:

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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