E7-10 Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the following transactions occurred: LO 7.5 Date Transaction Units Cost/Unit November 1 Balance 8 Sale Purchase 500 $3.50 350 300 200 150 13 21 Purchase 28 Sale 4.00 5.00 SHOW ME HOW Required: 1. Compute the cost of goods sold for November and the inventory at the end of November for each of the following cost flow assumptions: a. FIFO b. LIFO . Average cost 2. Next Level What can you conclude about the effects of the inventory cost flow assumptions on the financial statements?
E7-10 Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the following transactions occurred: LO 7.5 Date Transaction Units Cost/Unit November 1 Balance 8 Sale Purchase 500 $3.50 350 300 200 150 13 21 Purchase 28 Sale 4.00 5.00 SHOW ME HOW Required: 1. Compute the cost of goods sold for November and the inventory at the end of November for each of the following cost flow assumptions: a. FIFO b. LIFO . Average cost 2. Next Level What can you conclude about the effects of the inventory cost flow assumptions on the financial statements?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Attached are the spreadsheet and numbers from problem for numbers to be placed
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Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the
following transactions occurred:
LO 7.5
Date
Transaction
Units
Cost/Unit
November
$3.50
Balance
8.
1
Sale
Purchase
Purchase
500
350
300
13
4.00
200
150
21
5.00
SHOW
ME HOW
28
Sale
Required:
1. Compute the cost of goods sold for November and the inventory at the end of November for each of the
following cost flow assumptions:
a.
FIFO
b. LIFO
c.
Average cost
2. Next Level What can you conclude about the effects of the inventory cost flow assumptions on the financial
statements?
マワ11
Altorn
Methode Pork
the follouing transas"
Transcribed Image Text:E7-10
Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the
following transactions occurred:
LO 7.5
Date
Transaction
Units
Cost/Unit
November
$3.50
Balance
8.
1
Sale
Purchase
Purchase
500
350
300
13
4.00
200
150
21
5.00
SHOW
ME HOW
28
Sale
Required:
1. Compute the cost of goods sold for November and the inventory at the end of November for each of the
following cost flow assumptions:
a.
FIFO
b. LIFO
c.
Average cost
2. Next Level What can you conclude about the effects of the inventory cost flow assumptions on the financial
statements?
マワ11
Altorn
Methode Pork
the follouing transas

Transcribed Image Text:Copy of ET_Ex07-10_Wahlen_Inte...
E7-10
E7-10
Name:
Complete the schedule below by filling in the shaded cells.
An asterisk (*) will appear before an incorrect amount in specific cells.
1
a
FIFO:
Ending Inventory (500 units)
units
units
@
Cost of Goods Sold (500 units):
Beginning Inventory
Purchases
+ Ending Inventory
Cost of Goods Sold
Ending Inventory (500 units)
@
b
LIFO:
units
Cost of Goods Sold (500 units):
Beginning Inventory
Purchases
Ending Inventory
Cost of Goods Sold
Weighted Average:
Goods Available for Sale:
units
@
units
@
units
@
Cost of Goods Available for Sale
Units Available for Sale
Average Cost
Ending Inventory
Cost of Goods Sold:
Beginning Inventory
Purchases
+ Ending Inventory
Cost of Goods Sold
+
%3D
2. Examine the ending inventory amounts and compare and contrast between the three methods in below
text box. However it will not be graded.
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