the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the periode Requirements 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold ending merchandise inventory, and gross profe 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory and gross prof 3. Prepare a perpetual inventory record, using the weighted average inventory costing method, and determine the company's cost of goods sold ending merchandise inventory, and gross proft (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar) 4. If the business wanted to pay the least amount of income taxes possible. which method would choose? Print Done the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Ente

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise Planet began July with merchandise inventory of 70 crates of vitamins that cost a total of $4,550. During the month, Exercise Planet purchased and sold merchandise on account as follows:
(Click the icon to view the transactions.)
Read the requirements.
Requirement 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Purchases
Cost of Goods Sold
Inventory on Hand
Unit
Cost
Total
Unit
Cost Quantity Cost
Unit
Quantity Cost
Date
Jul. 1
5
13
18
26
Totals
Date Quantity
Jul. 1
13
18
26
Quantity
Jul. 1
Unit
Date Quantity Cost
5
13
18
26
Purchases
Gross profit is
Total
Cost
Total
Cost
Unit
Quantity Cost
Total
Cost
Total
Cost
Determine the company's gross profit using the FIFO inventory costing method.
Gross profit is
using the FIFO inventory costing method.
Requirement 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Purchases
Cost of Goods Sold
Inventory on Hand
Total
Unit
Unit
Cost
Total
Unit
Cost Quantity Cost
Cost Quantity Cost
Total
Cost
Unit
Quantity Cost
Inventory on Hand
Data table
Total
Cost
Totals
Determine the company's gross profit using the weighted-average inventory costing method.
using the weighted-average inventory costing method.
Requirement 4. If the business wanted to pay the least amount of income taxes possible, which method would it choose?
If the business wanted to pay the least amount of income taxes possible, they would choose
Jul. 5 Purchase
Jul. 13 Sale
Jul. 18 Purchase
Jul. 26 Sale
130 crates @ $76 each
140 crates @ $98 each
150 crates @ $83 each
160 crates @ $102 each
Print
Done
Totals
Determine the company's gross profit using the LIFO inventory costing method.
Gross profit is
using the LIFO inventory costing method.
Requirement 3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the weighted-average inventory costing method. Enter the transactions chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost f merchandise inventory purchased, sold, and on hand at the end of the period. (Round weighted-average cost per unit to the neare.
Cost of Goods Sold
X
Requirements
1.
2.
3.
4.
Prepare a perpetual inventory record, using the FIFO inventory
costing method, and determine the company's cost of goods sold, ending
merchandise inventory, and gross profit.
Prepare a perpetual inventory record, using the LIFO inventory
costing method, and determine the company's cost of goods sold, ending
merchandise inventory, and gross profit.
Prepare a perpetual inventory record, using the weighted-average inventory
costing method, and determine the company's cost of goods sold, ending
merchandise inventory, and gross profit. (Round weighted-average cost per
unit to the nearest cent and all other amounts to the nearest dollar.)
If the business wanted to pay the least amount of income taxes possible,
which method would it choose?
Print
X
Done
Transcribed Image Text:Exercise Planet began July with merchandise inventory of 70 crates of vitamins that cost a total of $4,550. During the month, Exercise Planet purchased and sold merchandise on account as follows: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Cost of Goods Sold Inventory on Hand Unit Cost Total Unit Cost Quantity Cost Unit Quantity Cost Date Jul. 1 5 13 18 26 Totals Date Quantity Jul. 1 13 18 26 Quantity Jul. 1 Unit Date Quantity Cost 5 13 18 26 Purchases Gross profit is Total Cost Total Cost Unit Quantity Cost Total Cost Total Cost Determine the company's gross profit using the FIFO inventory costing method. Gross profit is using the FIFO inventory costing method. Requirement 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Cost of Goods Sold Inventory on Hand Total Unit Unit Cost Total Unit Cost Quantity Cost Cost Quantity Cost Total Cost Unit Quantity Cost Inventory on Hand Data table Total Cost Totals Determine the company's gross profit using the weighted-average inventory costing method. using the weighted-average inventory costing method. Requirement 4. If the business wanted to pay the least amount of income taxes possible, which method would it choose? If the business wanted to pay the least amount of income taxes possible, they would choose Jul. 5 Purchase Jul. 13 Sale Jul. 18 Purchase Jul. 26 Sale 130 crates @ $76 each 140 crates @ $98 each 150 crates @ $83 each 160 crates @ $102 each Print Done Totals Determine the company's gross profit using the LIFO inventory costing method. Gross profit is using the LIFO inventory costing method. Requirement 3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the weighted-average inventory costing method. Enter the transactions chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost f merchandise inventory purchased, sold, and on hand at the end of the period. (Round weighted-average cost per unit to the neare. Cost of Goods Sold X Requirements 1. 2. 3. 4. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) If the business wanted to pay the least amount of income taxes possible, which method would it choose? Print X Done
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