Tigerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. Activities Date Mar. 1 Beginning inventory Purchase Mar. 5 Mar. 9 Sales Mar. 18 Mar. 25 Mar. 29 Purchase Purchase Sales Totals Units Acquired at Cost Units Sold at Retail 100 units @ $50 per unit 400 units@ $55 per unit 120 units @ $60 per unit 200 units @ $62 per unit 820 units 420 units @ $85 per unit 160 units @ $95 per unit 580 units Case Paper Requirements: 1. Compute cost of goods available for sale and the number of units available for sale. Compute the number of units in ending inventory. 2. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and (c) weighted average. ( 3. Compute gross profit earned by the company for each of the three costing methods in part 3. 4. Prepare a brief memorandum to the Chief Accountant of Tigerwoods Company explaining the results of your calculations in part 2 and how each method would affect net income. Use complete sentences with proper grammar and punctuation 5. Note that formatting and visual ease of grading will be assessed.

Tigerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. Activities Date Mar. 1 Beginning inventory Purchase Mar. 5 Mar. 9 Sales Mar. 18 Mar. 25 Mar. 29 Purchase Purchase Sales Totals Units Acquired at Cost Units Sold at Retail 100 units @ $50 per unit 400 units@ $55 per unit 120 units @ $60 per unit 200 units @ $62 per unit 820 units 420 units @ $85 per unit 160 units @ $95 per unit 580 units Case Paper Requirements: 1. Compute cost of goods available for sale and the number of units available for sale. Compute the number of units in ending inventory. 2. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and (c) weighted average. ( 3. Compute gross profit earned by the company for each of the three costing methods in part 3. 4. Prepare a brief memorandum to the Chief Accountant of Tigerwoods Company explaining the results of your calculations in part 2 and how each method would affect net income. Use complete sentences with proper grammar and punctuation 5. Note that formatting and visual ease of grading will be assessed.

Name: Tigerwoods Company uses a perpetual inventory system. It entered into
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Tigerwoods Company uses a perpetual inventory system. It entered into the following purchasesand sales transactions for April.DateMar. 1Mar. 5Mar. 9Mar. 18Mar. 25Mar. 29ActivitiesBeginning inventoryPurchaseSalesPurchasePurchaseSalesTotalsUnits Acqui

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

See similar textbooks

Related questions

Q: 3. Compute the cost assigned to ending Inventory using (a) FIFO, (b) LIFO, (c) weighted average, and…

A: Inventory Valuation is a method of calculating the value of stock at the end of an accounting…