Bears, Inc. began the year with merchandise inventory of 50 sofas that each cost $500. During January, Bears purchased and sold merchandise on account as follows Jan. 5 Jan 10 Jan. 20 Jan. 25 Purchase Sale Purchase Sale 14 sofas @ $520 ea. 40 sofas 22 sofas at $515 ea. 31 sofas Determine the COGS sold and ending inventory values under FIFO, LIFO and weighted-average (round to 2 decimals). Additionally, determine the inventory method with the highest and lowest COGS as well as the highest and lowest value of ending inventory. You will need to prepare a perpetual inventory chart for this problem (see text exhibits 5.5, 5.6 and 5.7 for examples). Bears, Inc. began the year with nierchandise inventory of 50 sofas that each cost $500. During January, Bears purchased and sold merchandise on account asfollowsJan. 5Jan 10Jan 20Jan 25PurchaseSalePurchaseSale14 sofas @ $520 ea40 sofas22 sofas at $515 ea31 sofasDetermine the COGS sold and ending inventory values under FIFO, LIFO and weighted-average (round to 2 decimals). Additionally determine the inventory methodwith the highest and lowest COGS as well as the highest and lowest value of ending inventory. You will need to prepare a perpetual inventory chart for this problem(see text exhibits 5.5, 56 and 5.7 for examples)

Name: Bears, Inc. began the year with merchandise inventory of 50 sofas that
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Description: Bears, Inc. began the year with merchandise inventory of 50 sofas that each cost $500. During January, Bears purchased and sold merchandise on account as follows Jan. 5 Jan 10 Jan. 20 Jan. 25 Purchase Sale Purchase Sale 14 sofas @ $520 ea. 40 sofas 2

The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO, the…

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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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Bears, Inc. began the year with merchandise inventory of 50 sofas that each cost $500. During January, Bears purchased and sold merchandise on account as follows Jan. 5 Jan 10 Jan. 20 Jan. 25 Purchase Sale Purchase Sale 14 sofas @ $520 ea. 40 sofas 22 sofas at $515 ea. 31 sofas Determine the COGS sold and ending inventory values under FIFO, LIFO and weighted-average (round to 2 decimals). Additionally, determine the inventory method with the highest and lowest COGS as well as the highest and lowest value of ending inventory. You will need to prepare a perpetual inventory chart for this problem (see text exhibits 5.5, 5.6 and 5.7 for examples).

Bears, Inc. began the year with nierchandise inventory of 50 sofas that each cost $500. During January, Bears purchased and sold merchandise on account as
follows
Jan. 5
Jan 10
Jan 20
Jan 25
Purchase
Sale
Purchase
Sale
14 sofas @ $520 ea
40 sofas
22 sofas at $515 ea
31 sofas
Determine the COGS sold and ending inventory values under FIFO, LIFO and weighted-average (round to 2 decimals). Additionally determine the inventory method
with the highest and lowest COGS as well as the highest and lowest value of ending inventory. You will need to prepare a perpetual inventory chart for this problem
(see text exhibits 5.5, 56 and 5.7 for examples)

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