Ok, so I have determined the cost of goods sold and value of ending inventory for the month of January, using FIFO, LIFO, and the weighted average cost method. What I don't understand is question b. Which is, "if the net realizable value of kids inventory is $4.00 per unit and January 31, what value should be reported for her ending inventory on January 31 balance sheet under each other three inventory costing in methods? ## Inventory Management Example### Inventory Details:**Beginning Inventory:**| Date | Units | Cost | Total ||-------|-------|------|--------|| Jan. 10 | 400 | $3 | $1,200 || Jan. 17 | 500 | $4 | $1,750 || Jan. 23 | 300 | $4 | $1,200 |**Total Cost of Goods Available for Sale:** 1,200 units, $4,150**Units in Ending Inventory:** 40---### FIFO (First-In, First-Out) Method:**Jan. 10 Purchase:**| Units | Cost | Total ||-------|------|-------|| 40 | $3 | $120 |**Calculations:**- Cost of Goods Available for Sale: $4,150- Less: Ending Inventory: $120- **Cost of Goods Sold:** $4,030---### LIFO (Last-In, First-Out) Method:**Jan. 23 Purchase:**| Units | Cost | Total ||-------|------|--------|| 40 | $3 | $120 |**Calculations:**- Cost of Goods Available for Sale: $4,150- Less: Ending Inventory: $160- **Cost of Goods Sold:** $3,990---### Weighted Average Cost Method:- **Weighted Average Cost per Unit:** $3.458- Ending Inventory: $4,014- **Cost of Goods Sold:** $137---This example demonstrates the calculation of the cost of goods sold and ending inventory using different inventory valuation methods: FIFO, LIFO, and Weighted Average Cost. Each method impacts financial reporting and business outcomes in unique ways. ## Serial Problem: Kate's Cards*Note: This is a continuation of the Serial Problem: Kate’s Cards from Chapters 1 through 5.*As expected, the holiday season was very busy for Kate and her greeting card company. In fact, most of her supplies were fully depleted by year-end, necessitating a restocking of inventory. Assume that Kate uses the periodic method of accounting for inventory and that her January beginning inventory was $0. The following transactions occurred for Kate’s Cards during January of the New Year:### Purchases- **January 10** - Units: 400 - Unit Cost: $3.00 - Total Cost: $1,200- **January 17** - Units: 500 - Unit Cost: $3.50 - Total Cost: $1,750- **January 23** - Units: 300 - Unit Cost: $4.00 - Total Cost: $1,200- **Total Units Purchased**: 1,200- **Total Cost**: $4,150### Sales- **January 15**: 360 units- **January 20**: 420 units- **January 25**: 380 units- **Total Units Sold**: 1,160### Required:a. Calculate the company’s cost of goods sold and value of ending inventory for the month of January using the following methods: 1. **FIFO (First-In, First-Out)** 2. **LIFO (Last-In, First-Out)** 3. **Weighted-Average Cost Method** Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar.b. If the net realizable value of Kate’s inventory is $4.00 per unit on January 31, what value should be reported for her ending inventory on the January 31 balance sheet under each of the three inventory costing methods?### Financial Reporting Problem: The Columbia Sportswear CompanyThe financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this textbook.### Required:Answer the following questions using Columbia’s Consolidated Financial Statements:a. How much inventory does Columbia carry on its balance sheet? What percentage of Columbia’s total assets does inventory represent in 2017 and 2016?b.

Ending Inventory units = 40 units Weighted average cost per unit = $ 3.458 Value of Ending inventory…

Answered: Ok, so I have determined the cost of…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q