Your company had the following chronological inventory transactions during 2019 and 2020: 2019 Beginning Inventory 20 units cost = $20.00 per unit Purchased 80 units cost = $21.00 per unit Sold 77 units selling price = $45.00 per unit Purchased 60 units cost = $21.60 per unit Sold 61 units selling price = $46.00 per unit Purchased 15 units cost = $22.00 per unit Ending Inventory 37 units 2020 Beginning Inventory 37 units ending inventory from 2019 Purchased 90 units cost = $22.40 per unit Sold 86 units selling price = $47.00 per unit Purchased 72 units cost = $23.00 per unit Sold 74 units selling price = $48.00 per unit Ending Inventory 39 units INSTRUCTIONS: A. Calculate the value of Ending Inventory which would appear on the balance sheet for EACH year using each of the following methods. Please show your work for the 37 units of 2019 and your work for the 39 units of 2020. Round all costs per unit to two decimals and show your final answer to the nearest penny. 1. Periodic FIFO for 2019 and then for 2020 2. Periodic LIFO for 2019 and then for 2020 3. Periodic Average for 2019 and then for 2020 4. Perpetual FIFO for 2019 and then for 2020 5. Perpetual LIFO for 2019 and then for 2020 6. Perpetual Average for 2019 ONLY (because this takes too long for two years)
Your company had the following chronological inventory transactions during 2019 and 2020: 2019 Beginning Inventory 20 units cost = $20.00 per unit Purchased 80 units cost = $21.00 per unit Sold 77 units selling price = $45.00 per unit Purchased 60 units cost = $21.60 per unit Sold 61 units selling price = $46.00 per unit Purchased 15 units cost = $22.00 per unit Ending Inventory 37 units 2020 Beginning Inventory 37 units ending inventory from 2019 Purchased 90 units cost = $22.40 per unit Sold 86 units selling price = $47.00 per unit Purchased 72 units cost = $23.00 per unit Sold 74 units selling price = $48.00 per unit Ending Inventory 39 units INSTRUCTIONS: A. Calculate the value of Ending Inventory which would appear on the balance sheet for EACH year using each of the following methods. Please show your work for the 37 units of 2019 and your work for the 39 units of 2020. Round all costs per unit to two decimals and show your final answer to the nearest penny. 1. Periodic FIFO for 2019 and then for 2020 2. Periodic LIFO for 2019 and then for 2020 3. Periodic Average for 2019 and then for 2020 4. Perpetual FIFO for 2019 and then for 2020 5. Perpetual LIFO for 2019 and then for 2020 6. Perpetual Average for 2019 ONLY (because this takes too long for two years)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Your company had the following chronological inventory transactions during 2019 and 2020:
2019 Beginning Inventory
20 units
cost = $20.00 per unit
Purchased
80 units
cost = $21.00 per unit
Sold
77 units
selling price = $45.00 per unit
Purchased
60 units
cost = $21.60 per unit
Sold
61 units
selling price = $46.00 per unit
Purchased
15 units
cost = $22.00 per unit
Ending Inventory
37 units
2020 Beginning Inventory
37 units
ending inventory from 2019
Purchased
90 units
cost = $22.40 per unit
Sold
86 units
selling price = $47.00 per unit
Purchased
72 units
cost = $23.00 per unit
74 units
Sold
selling price = $48.00 per unit
Ending Inventory
39 units
INSTRUCTIONS:
A. Calculate the value of Ending Inventory which would appear on the balance sheet for
EACH year using each of the following methods. Please show your work for the 37 units
of 2019 and your work for the 39 units of 2020. Round all costs per unit to two decimals
and show your final answer to the nearest penny.
1. Periodic FIFO for 2019 and then for 2020
2. Periodic LIFO for 2019 and then for 2020
3. Periodic Average for 2019 and then for 2020
4. Perpetual FIFO for 2019 and then for 2020
5. Perpetual LIFO for 2019 and then for 2020
6. Perpetual Average for 2019 ONLY (because this takes too long for two years)
A. Show the journal entries for the first purchase and the first sale in 2019 assuming the
transactions were both on account using the following inventory methods:
1. Perpetual LIFO
2. Periodic Average
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VIEWCalculation of Ending Inventory using Periodic method for the year 2019 and 2020.
VIEWCalculation of Ending Inventory under Perpetual Method for the year 2019 and 2020. (FIFO Method)
VIEWCalculation of Ending Inventory under Perpetual Method for the year 2019 and 2020. (LIFO Method)
VIEWCalculation of Ending Inventory under Perpetual Method for the year 2019 (Weighted Average Method)
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