On January 1, 2022, Chris Columbus decided to start a new business, Ahoy Mates, that sells children's toy boats. Eachboat is sold for $24. The following purchases were made during 2022.FINANCIAL ACCOUNTINGInventory Costing CaseNameJan 1Jan 15Feb 2Feb 10Mar 1April 4June 1a.Aug 14Nov 15Dec 69.Items550 @200 @900 @500 @200 @750 @325 @475 @850 @300 @Cost$10.8910.8010.7811.2011.45Ahoy Mates uses a periodic inventory system and has 325 items remaining in inventory. At December 31, Ahoy Mates istrying to determine which inventory costing method he should use.Answer the following questions to help Ahoy Mates determine which method he will adopt for his new business.1. How many items did Ahoy Mates purchase in 2022?2. What is the cost of goods purchased by Ahoy Mates in 2022?3. How many items remain in Ahoy Mates inventory as of December 31?4. How many items did Ahoy Mates sell in 2022?11.4011.7211.8012.2012.325. What was Ahoy Mates total sales amount in 2022?6. Answer the following questions assuming Ahoy Mates uses the weighted average inventory costing method.What is the weighted average cost per unit?(Round to nearest penny)b. What is the value of the ending inventory?c. What is the cost of goods sold?d. What is the gross profit?7. Answer the following questions assuming Ahoy Mates uses the first in, first out (FIFO) inventory costing method.What is the value of the ending inventory?a.b. What is the cost of goods sold?c. What is the gross profit?8. Answer the following questions assuming Ahoy Mates uses the last in, first out (LIFO) inventory costing method.What is the value of the ending inventory?a.b. What is the cost of goods sold?C.What is the gross profit?Which method do you recommend and WHY?

The question is based on the concept of Cost Accounting.The value of the ending inventory and the…

Name FINANCIAL ACCOUNTING Inventory Costing Case On January 1, 2022, Chris Columbus decided to start a new business, Ahoy Mates, that sells children's toy boats. Each boat is sold for $24. The following purchases were made during 2022. Jan 1 Jan 15 Feb 2 Feb 10 Mar 1 April 4 Items 550 @ 200 @ 900 @ 500 @ 200 @ 750 @ 205 o Cost $10.89 10.80 10.78 11.20 11.45 11.40 11.72

Name FINANCIAL ACCOUNTING Inventory Costing Case On January 1, 2022, Chris Columbus decided to start a new business, Ahoy Mates, that sells children's toy boats. Each boat is sold for $24. The following purchases were made during 2022. Jan 1 Jan 15 Feb 2 Feb 10 Mar 1 April 4 Items 550 @ 200 @ 900 @ 500 @ 200 @ 750 @ 205 o Cost $10.89 10.80 10.78 11.20 11.45 11.40 11.72

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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