Mist, Inc. uses a PERIODIC inventory system and has the following transactions for one of its inventory items during 2020: Beginning Inventory 127 units @ $43 per unit Purchases Purchase 1 on 3/11/20 53 units @ $45 per unit Purchase 2 on 10/18/20 90 units @ $46 per unit Sales Sale 1 on 3/15/20 110 units @ $70 per unit Sale 2 on 10/22/20 110 units @ $70 per unit All units sold on 3/15/20 were from beginning inventory. The 10/22/20 sale included 40 units from the 3/11/20 purchase and 70 units from the 10/18/20 purchase. Show how Mist's Balance Sheet and Income Statement would differ under each of the inventory cost flow assumptions. Compute Ending Inventory, COGS and Gross Profit under Specific Identification, Weighted Average Cost, FIFO and LIFO. Fill in your answers on the table.
Mist, Inc. uses a PERIODIC inventory system and has the following transactions for one of its inventory items during 2020: Beginning Inventory 127 units @ $43 per unit Purchases Purchase 1 on 3/11/20 53 units @ $45 per unit Purchase 2 on 10/18/20 90 units @ $46 per unit Sales Sale 1 on 3/15/20 110 units @ $70 per unit Sale 2 on 10/22/20 110 units @ $70 per unit All units sold on 3/15/20 were from beginning inventory. The 10/22/20 sale included 40 units from the 3/11/20 purchase and 70 units from the 10/18/20 purchase. Show how Mist's Balance Sheet and Income Statement would differ under each of the inventory cost flow assumptions. Compute Ending Inventory, COGS and Gross Profit under Specific Identification, Weighted Average Cost, FIFO and LIFO. Fill in your answers on the table.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mist, Inc. uses a PERIODIC inventory system and has the following transactions for one of its inventory items during 2020:
Beginning Inventory | 127 units | @ | $43 per unit |
Purchases | |||
Purchase 1 on 3/11/20 | 53 units | @ | $45 per unit |
Purchase 2 on 10/18/20 | 90 units | @ | $46 per unit |
Sales | |||
Sale 1 on 3/15/20 | 110 units | @ | $70 per unit |
Sale 2 on 10/22/20 | 110 units | @ | $70 per unit |
All units sold on 3/15/20 were from beginning inventory. The 10/22/20 sale included 40 units from the 3/11/20 purchase and 70 units from the 10/18/20 purchase.
Show how Mist's Balance Sheet and Income Statement would differ under each of the inventory cost flow assumptions. Compute Ending Inventory, COGS and Gross Profit under Specific Identification, Weighted Average Cost, FIFO and LIFO. Fill in your answers on the table.
Specific Identification |
First-In, First-Out |
Last-In, First-Out |
Weighted Average Cost (round to 2 decimal places) |
|
12/31/20 Balance Sheet Ending Inventory |
fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | fill in the blank 4 |
2020 Income Statement | ||||
Cost of Goods Sold | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 |
Gross Profit |
fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
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