**Instructions:**Complete this question by entering your answers in the tabs below.**Requirements:**- Req 1A- Req 1B- Req 1C- Req 1D- Req 2A- Req 2B**Task:**a. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the LIFO method. (Round "Cost per Unit" answers to 2 decimal places.)---**LIFO (Periodic) Inventory Calculation:**| | Units | Cost per Unit | Total ||----------------------------|-------|---------------|------------|| **Beginning Inventory** | 190 | $33.00 | $6,270 || **Purchases** | | | || March 2 | 295 | $35.00 | || June 30 | 240 | $39.00 | || **Total Purchases** | 535 | | $19,685 || **Goods Available for Sale** | 725 | | $25,955 || **Cost of Goods Sold** | | | || Units from Beginning Inventory | | | || Units from March 2 Purchase | | | || Units from June 30 Purchase | 240 | $39.00 | || **Total Cost of Goods Sold** | 240 | | $9,360 || **Ending Inventory** | | | |**Explanation:**The table outlines an inventory calculation using the Last-In, First-Out (LIFO) periodic method. Inventory is tracked from beginning levels, through purchases made on specific dates, to the final calculation of goods sold and ending inventory at the close of the period. Ensure calculations for cost per unit and total costs are rounded to two decimal places as instructed. **Understanding Inventory Costing Methods**Scrappers Supplies monitors inventory using a periodic system. Here’s an overview of their transactions and how to calculate costs under various methods:### Transaction Summary:| Transactions | Units | Unit Cost ||------------------------------------|-------|-----------|| Beginning inventory, January 1 | 190 | $33 || **Transactions during the year:** | | || a. Purchase on account, March 2 | 295 | $35 || b. Cash sale, April 1 ($49 each) | (340) | || c. Purchase on account, June 30 | 240 | $39 || d. Cash sale, August 1 ($49 each) | (95) | |**Note:** Purchases and sales are recorded in chronological order; however, costs are determined post-purchase.### Required Calculations:1. **Cost Computations** - Compute the cost of goods available for sale, ending inventory, and cost of goods sold using: - **a. Last-in, first-out (LIFO)** - **b. Weighted average cost** - **c. First-in, first-out (FIFO)** - **d. Specific identification** (April 1 sale: 1/5 from beginning inventory, 4/5 from March 2 purchase; August 1 sale: from June 30 purchase)2. **Method Impact Analysis** - Determine which method results in the highest gross profit. - Identify which method leads to the lowest income taxes.*Please note, for precise calculations, round the "Cost per Unit" to two decimal places.*Understanding these methods will deepen your knowledge of inventory costing and its impact on financial statements.

Name: **Instructions:**Complete this question by entering your answers in t
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: **Instructions:**Complete this question by entering your answers in the tabs below.**Requirements:**- Req 1A- Req 1B- Req 1C- Req 1D- Req 2A- Req 2B**Task:**a. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods