ACCT 212 Week 5 Homework Assignment (GRADED A+) Questions and Answers | Download To Score An A

1. Question: a. Required: Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit Sales revenue = 450 units × $70 = $31,500 Gross profit = Sales revenue − Cost of goods sold = $31,500 − $24,970 = $6,530 2. Question: b. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. Sales revenue = 450 units × $70 = $31,500 Gross profit = Sales revenue − Cost of goods sold = $31,500 − $25,410 = $6090 3. Question: c. Using weighted-average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round “Average Cost per unit” to 2 decimal places and all other answers to the nearest whole number.) 4. Question: d. Determine which method will result in higher profitability when inventory costs are rising. FIFO 4. Question: Required: e. Calculate cost of goods sold for each company. 5. Question: f. Calculate the inventory turnover ratio for each company. Cost of goods sold/average inventory (inventory beginning + inventory ending)/2 Average Inventory: Lewis Cost of Goods Sold $197,200/ ($20,000 + $14,000)/2 $197,200/ $17,000 = 11.6 Clark Cost of Goods Sold $132,600/ ($46,000 + $56,000)/2 $132,600/ $51,000 = 2.6 6. Question: g. Calculate the average days in inventory for each company. (Round your intermediate calculations to 1 decimal place.) 8. Question: h. Which company appears to be managing its inventory more efficiently? 9. Question: Required: i. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. 10. Question: j. Using FIFO, calculate ending inventory and cost of goods sold at October 31. Ending inventory: (1 x $750) + (8 x $760) $750 + $6,080 = $6,830 Cost of goods sold: (6 x $730) + (5 x $740) + (3 x $750) $4,380 + $3,700 + $2,250 = $10,330 11. Question: k. Using LIFO, calculate ending inventory and cost of goods sold at October 31. Date Number of Units Unit Cost Total Cost Oct 1 Begin In 6 $730 $4,380 Oct 10 Purch 5 $740 $3,700 Oct 20 Purch 4 $750 $3,000 Oct 30 Purch 8 $760 $6,080 12. Question: l. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31. (Round your intermediate and final answers to 2 decimal places.) Show Less