Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic...


How do we get 70, 280, and 50? Please show me the work and explanation. Thanks!



Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing<br>method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following<br>information at the end of the annual accounting period, December 31.<br>Unit<br>Transactions<br>Units<br>Cost<br>Beginning inventory, January 1<br>Transactions during the year:<br>a. Purchase on account, March 2<br>b. Cash sale, April 1 ($46 each)<br>c. Purchase on account, June 30<br>d. Cash sale, August 1 ($46 each)<br>200<br>$30<br>300<br>32<br>(350)<br>250<br>36<br>(50)<br>TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the<br>purchases have occurred.<br>Required:<br>1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the<br>following inventory costing methods:<br>a. Last-in, first-out.<br>b. Weighted average cost.<br>c. First-in, first-out.<br>d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the<br>purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30.<br>2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes?<br>

Extracted text: Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Unit Transactions Units Cost Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($46 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($46 each) 200 $30 300 32 (350) 250 36 (50) TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: a. Last-in, first-out. b. Weighted average cost. c. First-in, first-out. d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. 2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes?
Complete this question by entering your answers in the tabs below.<br>Req 1A<br>Req 1B<br>Req 10<br>Req 1D<br>Req 2A<br>Req 2B<br>d. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the<br>Specific identification method. Assume that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths<br>from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. (Round
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Extracted text: Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 10 Req 1D Req 2A Req 2B d. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the Specific identification method. Assume that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. (Round "Cost per Unit" anwers to 2 decimal places.) Show less A Cost Specific Identification (Periodic) Units Total per Unit Beginning Inventory $ 30.00 $ 6,000 200 Purchases $ 32.00 $ 36.00 March 2 300 June 30 250 Total Purchases 550 18,600 Goods Available for Sale Cost of Goods Sold 750 24,600 $ 30.00 $ 32.00 $ 36.00 Units from Beginning Inventory 70 Units from March 2 Purchase 280 Units from June 30 Purchase 50 Total Cost of Goods Sold 400 12,860 Ending Inventory $11,7400 350 < req="" 1c="" req="" 2a="">

Jun 11, 2022
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