8.04 Assignment - Inventories.docx - Santiago 1 Shianne Santiago Keystone Accounting Teachers Accounting June 1 2020 Inventories Part 1 The following

8.04 Assignment - Inventories.docx - Santiago 1 Shianne...

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Santiago 1 Shianne Santiago Keystone Accounting Teachers Accounting June 1, 2020 Inventories Part 1: 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 Instruction: Use the information given above and determine the cost of merchandise sold and the gross profit on sales for each of the inventory costing methods. Specific Identification FIFO LIFO Weighted Average Cost Cost of Purchases Available for Sale $57,621.31 $57,621.31 $57,621.31 $57,621.31 Less: Ending Inventory $21,476 $21,581.40 $21,410.93 $21,447.36 Cost of Merchandise Sold $36,145.31 $36,039.91 $36,210.38 $36,173.95 57,621.31 – 21,476 = 36,145.31 57,621.31 – 21,581.40 = 36,039.91 57,621.31 – 21,410.93 = 36,210.38 57,621.31 – 21,447.36 = 36,173.95
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Santiago 2 Specific Identification FIFO LIFO Weighted Average Cost Sales $53,874.92 $53,874.92 $53,874.92 $53,874.92 Less: Cost of Merchandise Sold $36,145.31 $36,039.91 $36,210.38 $36,173.95 Gross Profit on Sales $17,729.61 $17,835.01 $17,664.54 $17,700.97 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
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  • Spring '13
  • Average cost, FIFO and LIFO accounting, Merchandise Sold, cost of ending, Shianne Santiago

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