Assignment: Inventories
The following table uses the four inventory costing method and displays the cost of ending inventory for
Click Cameras.
Specific Identification FIFO LIFO Weighted Average Cost $21,476.00 $21,581.40 $21,410.93 $21,447.36 Click Cameras also reported the following amounts:
Net sales $53,874.92 Purchases available for sale $57,621.31 [Cost of Inventory sold = Purchases available for sale – ending inventory]
Specific
Identification FIFO LIFO Weighted Average
Cost LIFO Weighted Average
Cost Purchases
Available for
sale LESS: Ending
Inventory Cost of
Merchandise
Sold [Gross profit on sales = Net sales – Cost of merchandise sold]
Specific
Identification Net Sales LESS: Cost of
Merchandise
Sold FIFO Gross Profit on
Sales Part 2
Two Wheels operates on a fiscal year beginning January 1. At the beginning of the year, the shop had 6
bicycles @$394 each (opening inventory). During the year the business made the following purchases:
Date Bicycle Cost Jan.20 4 $399 Mar. 5 5 $415 Apr. 23 7 $419 Aug. 14 4 $423 Oct. 3 6 $430 Nov. 17 3 $435 There were seven bicycles in inventory at the end of the period. During the year, the bicycles were sold
for $675 each.
Instructions: Calculate the cost of the ending inventory using the FIFO, LIFO, and weighted average cost
methods. Prepare a partial income statement for each inventory costing method showing the sales and the
calculation of gross profit on sales. Assume that the sales and purchases are net amounts. FIFO Method
Date Description Bicycle Units Cost Total Cost of Bicycles Available for Sale
Under the FIFO method, the items purchased are assumed to be the items sold ___________. Therefore
the ___bicycles sold are assumed to be as follows:
Date Descriptions Bicycle Units The remaining bicycles are: Date Purchased: Number of Bicycles Total Using the FIFO method, the cost of ending inventory is calculated as: Date Number of Bicycles Cost Per Unit Total Total LIFO Method
Date Description Bicycle Units Cost Cost of Bicycles Available for Sale Using the LIFO method, the cost of ending inventory is calculated as: Total Date Number of Bicycles Cost Per Unit Total Total Weighted Average Cost Method
Date Description Bicycle Units Cost Total Cost of Bicycles Available for Sale Finding the average unit cost of inventory Step 1: Adding the number of units on hand at the beginning of the period and number of units
purchased. = __________ bicycles Step 2: Adding the cost of the units on hand at the beginning of the period and the cost of the units
purchased. = ____________ + ____________=____________ Step 3: Finding the unit cost of inventory = Total Cost of Bicycles Available for Sale
Total Number of Bicycles = ____________ / ____________=____________ Cost of ending inventory using weighted average cost = ____________ X ____________=____________ Calculating cost of merchandise sold under each inventory costing method. Purchases
Available for
sale LESS: Ending
Inventory Cost of
Merchandise
Sold FIFO LIFO Method Method Weighted Average
Cost Method Partial Income Statement calculating Gross Profit
FIFO Net Sales LESS: Cost of
Merchandise
Sold Gross Profit on
Sales LIFO Weighted Average
Cost

• 1497929336-Assignment 6.14.17.docx

SuperTutor

(15)

Status NEW Posted 20 Jun 2017 03:06 AM My Price 15.00

-----------

Attachments

file 1497929339-Solutions file.docx preview (56 words )

S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------onÂ----------- th-----------is -----------web-----------sit-----------e. ----------- H-----------YPE-----------RLI-----------NK -----------&qu-----------ot;-----------htt-----------p:/-----------/wo-----------rkb-----------ank-----------247-----------.co-----------m/&-----------quo-----------t; -----------\t -----------&qu-----------ot;-----------_bl-----------ank-----------&qu-----------ot;----------- -----------Tha-----------nk -----------you----------- -----------

Not Rated(0)

• Buy Answer