10 18 21 8 58 AM Chapter 6 Homework Graded Sueiro Khoa Nguyen Student Khoa Nguyen Date 10 18 21 Instructor Alexander Sueiro Course ACG2021 Fall 2021 Sueiro Assignment Chapter 6 Homework Graded Sueiro Print Supplies Inc sells laser printers and supplies Assume each LIFO cost of 9 20 Duffy 7 90 started the year with each During the year the company purchased containers of ink 100 1 Duffy average cost of 600 total of 3 900 containers of ink at each FIFO cost of 580 8 60 units for and sold Ignore income taxes for this exercise 9 90 20 00 each Duffy paid operating expenses throughout the year a Prepare inventory costing methods Include a complete statement heading Duffy s income statement for the current year ended December 31 using the average cost FIFO and LIFO Click the icon to see the Worked Solution Review Only Complete the income statement by selecting the appropriate heading and income statement labels and then calculating the amounts for each of the three required inventory methods Calculate unit costs to the nearest cent Round all other calculations to the nearest whole dollar Duffy Print Supplies Inc Income Statement Year Ended December 31 Sales revenue 11 600 11 600 Average Cost FIFO LIFO Cost of goods sold Gross profit Operating expenses Net income 5 684 5 916 3 900 2 016 5 612 5 988 3 900 2 088 11 600 5 742 5 858 3 900 1 958 2 It is December 31 the end of the year and the controller of LCM rule to inventories Before any year end adjustments the company reports the following data 1 Click the icon to view the data Cornell Corporation is applying the lower of cost or market determines that the net realizable value of ending inventory is Cornell inventory and for cost of goods sold Identify the financial statement where each item appears Show what 45 000 Cornell should report for ending Click the icon to see the Worked Solution Review Only Financial statement where item is reported Balance to be reported Inventory Balance Sheet Cost of goods sold Income Statement 45 000 459 000 1 Data Table Cost of goods sold Historical cost of ending inventory as determined by a physical count 440 000 64 000 https xlitemprod pearsoncmg com api v1 print highered 1 10 10 18 21 8 58 AM Chapter 6 Homework Graded Sueiro Khoa Nguyen Company s inventory records for its retail division show the following at May 31 3 Richmond 2 Click the icon to view the accounting records At of these units are on hand 31 May 10 Read the requirements 3 Click the icon to see the Worked Solution Review Only Requirement 1 Compute cost of goods sold and ending inventory using each of the following four inventory methods Begin by entering the number of units sold and number of units in ending inventory Then calculate cost of goods sold and ending inventory using a specific identification then b average cost then c FIFO and finally d LIFO Round the average cost per unit to the nearest cent Round all final answers to the nearest whole dollar Number a b of units Specific identification Average cost Cost of goods sold Ending inventory 14 10 2 194 1 550 2 184 1 560 c FIFO 2 144 1 600 d LIFO 2 240 1 504 Requirement 2 Which method produces the highest cost of goods sold Which method produces the lowest cost of goods sold What causes the difference in cost of goods sold Which method produces the highest cost of goods sold LIFO Which method produces the lowest cost of goods sold FIFO The difference in cost of goods sold under the two methods identified above was caused by the increase in inventory unit cost May 1 Beginning inventory 6 units 150 900 May 15 Purchase May 26 Purchase 4 units 151 604 14 units 160 2 240 1 Compute cost of goods sold and ending inventory using each of the following methods a Specific identification with five 150 units and five 160 units still on hand at the end 2 Data Table 3 Requirements b Average cost c FIFO d LIFO 2 Which method produces the highest cost of goods sold Which method produces the lowest cost of goods sold What causes the difference in cost of goods sold https xlitemprod pearsoncmg com api v1 print highered 2 10 10 18 21 8 58 AM Chapter 6 Homework Graded Sueiro Khoa Nguyen specializes in sound equipment Company records indicate the following data for a line of speakers 4 MusicPalace 4 Click the icon to view the data Read the requirements 5 Click the icon to see the Worked Solution Review Only Requirement 1 Determine the amounts that ways a FIFO and b LIFO MusicPalace uses a perpetual inventory system MusicPalace should report for cost of goods sold and ending inventory two a Using the FIFO method the cost of goods sold is 638 and the ending inventory is 570 b Using the LIFO method the cost of goods sold is 686 and the ending inventory is 522 Requirement 2 March 31 answers to the nearest dollar 2018 MusicPalace reporting gross profit Operating expenses totaled uses the FIFO method Prepare the company s income statement for the month ended Round and the income tax rate was 310 35 638 388 310 78 27 51 MusicPalace Income Statement Month Ended March 31 2018 Sales revenue 1 026 Cost of goods sold Gross profit Operating expenses Income before income tax Income tax expense Net income 4 Data Table Date Item Quantity Unit Cost Sale Price Mar 1 Balance 14 2 Purchase 7 Sale 13 Sale 6 7 4 58 66 94 92 1 Determine the amounts that MusicPalace should report for cost of goods sold and ending inventory two ways MusicPalace uses a perpetual inventory system 5 Requirements a FIFO b LIFO 2 MusicPalace reporting gross profit Operating expenses totaled uses the FIFO method Prepare the company s income statement for the month ended March 31 2018 310 and the income tax rate was 35 https xlitemprod pearsoncmg com api v1 print highered 3 10 10 18 21 8 58 AM Chapter 6 Homework Graded Sueiro Khoa Nguyen 5 Garden Supplies uses a perpetual inventory system The company has these account balances at December 31 Princeton 2018 6 Click the icon to view the account balances prior to making the year end adjustments Read the requirement 8 7 Click the icon to view additional information Review Only Click the icon to see the Worked Solution Princeton Garden Supplies Income Statement partial Year Ended December 31 2018 122 000 76 500 45 500 Sales revenue Cost of goods sold Gross profit 6 Data Table Beg bal End bal 7 More Info 8 Requirement Inventory 11 000 14 500 Cost of Goods Sold Sales Revenue Bal 75 000 Bal 122 000 A year ago the net realizable value of ending inventory was 31 determined that the net realizable value of the