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Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($45 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($45 each) Required: 1-a. Calculate the cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. TIP: The sale of 320 units on April 1 is assumed, under LIFO, to consist of the 285 units purchased March 2 and 35 units from beginning inventory. Req 1A 1-b. Does the use of a perpetual inventory system result in a higher or lower Cost of Goods Sold than the periodic inventory system when costs are rising? LIFO (Perpetual) Complete this question by entering your answers in the tabs below. Beginning Inventory Purchases March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Units from beginning inventory Units from March 2 purchase Units from June 30 purchase Total Cost of Goods Sold Req 18 Calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. TIP: The sale of 320 units on April 1 is assumed, under LIFO, to consist of the 285 units purchased March 2 and 35 units from beginning inventory. Ending Inventory Units Unit Cost 170 $ 29 Units 285 (320) 220 (40) 0 0 31 35 Cost per Unit $ Total 0 0 Drau O 999

Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($45 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($45 each) Required: 1-a. Calculate the cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. TIP: The sale of 320 units on April 1 is assumed, under LIFO, to consist of the 285 units purchased March 2 and 35 units from beginning inventory. Req 1A 1-b. Does the use of a perpetual inventory system result in a higher or lower Cost of Goods Sold than the periodic inventory system when costs are rising? LIFO (Perpetual) Complete this question by entering your answers in the tabs below. Beginning Inventory Purchases March 2 June 30 Total Purchases Goods Available for Sale Cost of Goods Sold Units from beginning inventory Units from March 2 purchase Units from June 30 purchase Total Cost of Goods Sold Req 18 Calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. TIP: The sale of 320 units on April 1 is assumed, under LIFO, to consist of the 285 units purchased March 2 and 35 units from beginning inventory. Ending Inventory Units Unit Cost 170 $ 29 Units 285 (320) 220 (40) 0 0 31 35 Cost per Unit $ Total 0 0 Drau O 999

FINANCIAL ACCOUNTING
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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Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($45 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($45 each) Required: Req 1A 1-a. Calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. TIP: The sale of 320 units on April 1 is assumed, under LIFO, to consist of the 285 units purchased March 2 and 35 units from beginning inventory. 1-b. Does the use of a perpetual inventory system result in a higher or lower Cost of Goods Sold than the periodic inventory system when costs are rising? Req 18 Complete this question by entering your answers in the tabs below. LIFO (Perpetual) Beginning Inventory Purchases March 2 June 30 Units 170 Total Purchases Goods Available for Sale Cost of Goods Sold Units from beginning inventory Units from March 2 purchase Units from June 30 purchase Total Cost of Goods Sold Ending Inventory 285 (320) 220 (40) Calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. TIP: The sale of 320 units on April 1 is assumed, under LIFO, to consist of the 285 units purchased March 2 and 35 units from beginning inventory. Units Cost per Unit Total $ Unit Cost $ 29 31 0 35 0 0 0 0 e Drau 0 www
Transcribed Image Text:Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($45 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($45 each) Required: Req 1A 1-a. Calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. TIP: The sale of 320 units on April 1 is assumed, under LIFO, to consist of the 285 units purchased March 2 and 35 units from beginning inventory. 1-b. Does the use of a perpetual inventory system result in a higher or lower Cost of Goods Sold than the periodic inventory system when costs are rising? Req 18 Complete this question by entering your answers in the tabs below. LIFO (Perpetual) Beginning Inventory Purchases March 2 June 30 Units 170 Total Purchases Goods Available for Sale Cost of Goods Sold Units from beginning inventory Units from March 2 purchase Units from June 30 purchase Total Cost of Goods Sold Ending Inventory 285 (320) 220 (40) Calculate the Cost of Goods Sold and Ending Inventory for Scrappers Supplies assuming it applies the LIFO cost method perpetually at the time of each sale. TIP: The sale of 320 units on April 1 is assumed, under LIFO, to consist of the 285 units purchased March 2 and 35 units from beginning inventory. Units Cost per Unit Total $ Unit Cost $ 29 31 0 35 0 0 0 0 e Drau 0 www
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