13. E6A-26 - Unit V Homework-Mark Swift Student Mark Swift...

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Student: Mark Swift Date: 10/3/16 Instructor: Tech Support, Diane Casey, Wendy Styron, Kimberly Garrett, Jennifer Agee, Dee Wessler, Jennifer Byrom, Kristy Hawkins, Christina Horton, Faculty Services, Dawn Dunson, Mark Nelson Course: BBA2201-15N-2 Assignment: Unit V Homework Assume that Coffee Shop completed the following periodic inventory transactions for a line of merchandise inventory: Crave (Click the icon to view the transactions.) 1 Requirements 1. Compute ending merchandise inventory, cost of goods sold, and gross profit using the FIFO inventory costing method. 2. Compute ending merchandise inventory, cost of goods sold, and gross profit using the LIFO inventory costing method. 3. Compute ending merchandise inventory, cost of goods sold, and gross profit using the weighted-average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Accounting is simpler in a periodic inventory system because the company keeps no daily running record of inventory on hand. The only way to determine the ending merchandise inventory and cost of goods sold in a periodic inventory system is to take a physical inventory to count the goods left (on hand) usually at the end of the fiscal year. The periodic inventory system works well for a small business in which the inventory can be controlled by visual inspection that is, the inventory usually is not large in size or dollar amount. For all inventory costing methods, cost of goods available for sale is always the sum of beginning inventory plus net purchases. Go ahead and use the information given in the problem to calculate the dollar value of beginning merchandise inventory, net purchases, and cost of goods available for sale for the period. Units x Cost per unit = Total Beginning merchandise inventory 18 x 26 $ = 468 $ Plus: Net Purchases Jun. 12 purchase 4 x 29 $ = 116 $ Jun. 24 purchase 20 x 32 $ = 640 Total net purchases 756 Cost of goods available for sale 1,224 $ The different inventory costing methods

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