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Unformatted text preview: The prepetual inventory records of the Park Company indicate the following transactions in the month of June: Units Cost/Unit Inventory, June 1 200 $3.20 Purchases June 3 200 3.50 June 17 250 3.60 June 24 300 3.65 Sales June 6 300 June 21 200 June 27 150 Required Compute the cost of goods sold for June and the inventory at the end of June, using each of the following cost flow assumptions: 1. FirstIn, FirstOut (FIFO) 2. LastIn, First Out (LIFO) 3. Average Cost (round unit costs to 2 decimal places) 4. If Park Company uses IFRS, which of the previous alternatives would be acceptable? E88 Alternative Inventory Methods Name: An asterisk (*) will appear next to an incorrect amount(s) in the outlined cell(s). If you are still getting a red asterisk, and think the answer is correct, but used a formula in the cell try manually typing in the answer according to the rounding instructions. Required Compute the cost of goods sold for June and the inventory at the end of June, using each of the following cost flow assumptions: 1. FirstIn, FirstOut (FIFO) Purchases Cost of Goods Sold Units (layers) Left in Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Total Cost of Goods Sold, June 30 (add up Total Costs) Total Ending Inventory, June 30 (add up layers that are left) 2. LastIn, First Out (LIFO) Purchases Cost of Goods Sold Units (layers) Left in Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Total Cost of Goods Sold, June 30 (add up Total Costs) Total Ending Inventory, June 30 (add up layers that are left) 3. Average Cost (round unit costs to 2 decimal places) Purchases Cost of Goods Sold Units (layers) Left in Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Calculation of Average Cost per Unit (Cost of Inventory Available for Sale / Units Available for Sale) Totals Average Per Unit Calculation of Average Cost per Unit (Cost of Inventory Available for Sale / Units Available for Sale) Totals Average Per Unit Calculation of Average Cost per Unit (Cost of Inventory Available for Sale / Units Available for Sale) Totals Average Per Unit Total Cost of Goods Sold, June 30 (add up Total Costs) Total Ending Inventory, June 30 (add up layers that are left) 4. If Park Company uses IFRS, which of the previous alternatives would be acceptable? tax incentive for a company to use LIFO. Complete the paragraph above by selecting the word that best fits the corresponding number (you may use an answer more than once). (1) (2) (3) (4) (5) (6) (7) (8) (9) E88 Alternative Inventory Methods If Park Company uses (1) , it may report its inventory under (2) , (3) , or (4) identification. It may (5) use (6) under IFRS because it is not consistent with any presumed physical flow of inventory. Also, (7) is not allowed for (8) purposes in most other countries, so there is (9) tax Name: Solutions An asterisk (*) will appear next to an incorrect amount(s) in the outlined cell(s). If you are still gettingAn asterisk (*) will appear next to an incorrect amount(s) in the outlined cell(s)....
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 Spring '10
 Jaquiline
 Accounting

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