Mist, Inc. uses a PERIODIC inventory system and has the following transactions for one of its inventory items during 2020: Beginning Inventory 120 units @ $47 per unit Purchases Purchase 1 on 3/11/20 70 units @ $50 per unit Purchase 2 on 10/18/20 88 units @ $53 per unit Sales Sale 1 on 3/15/20 100 units @ $74 per unit Sale 2 on 10/22/20 130 units @ $74 per unit All units sold on 3/15/20 were from beginning inventory. The 10/22/20 sale included 60 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

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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Mist, Inc. uses a PERIODIC inventory system and has the following transactions for one of its inventory items during 2020:

Beginning Inventory	120 units	@	$47 per unit
Purchases
Purchase 1 on 3/11/20	70 units	@	$50 per unit
Purchase 2 on 10/18/20	88 units	@	$53 per unit

Sales
Sale 1 on 3/15/20	100 units	@	$74 per unit
Sale 2 on 10/22/20	130 units	@	$74 per unit

All units sold on 3/15/20 were from beginning inventory. The 10/22/20 sale included 60 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

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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