Cost of Merchandise Sold and Related Items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: Increase in estimated returns inventory $ 10,900 Merchandise inventory, May 1, 2018 435,600 Merchandise inventory, April 30, 2019 544,500 Purchases 3,539,000 Purchases returns and allowances 108,900 Purchases discounts 65,300 Sales 5,444,600 Freight in 16,300 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. Harkins Company Income Statement For the Year Ended April 30, 2019 Cost of merchandise sold: Merchandise inventory, May 1, 2018 y Cost of merchandise purchased: Purchases Less: Purchases returns and allowances v Less: Purchases discounts v Net purchases Add freight in / Total cost of merchandise purchased Merchandise available for sale v Less merchandise inventory, April 30, 2019 Cost of merchandise sold before estimated returns v Increase in estimated returns inventory v Cost of merchandise sold

Question Content Area Based on the following data for the current year, what is the inventory turnover (rounded to one decimal place)? Sales on account during year $586,967 Cost of merchandise sold during year 176,594 Accounts receivable, beginning of year 46,824 Accounts receivable, end of year 52,382 Merchandise inventory, beginning of year 31,526 Merchandise inventory, end of year 40,442 a.21.2 b.4.9 c.16.3 d.3.9

Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases May 10 May 1 2,900 units at $37 1,450 units at $39 1,305 units at $41 Sales May 12 14 2,030 units 1,740 units 20 31 870 units a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Cost of Merchandise Sold Purchases Purchases Quantity Quantity Unit Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost Unit Cost Total Cost Sold Date Purchased May 1 BE May 10 May 12 May…

FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: DATA Beginning inventory Sale First purchase Sale Second purchase Sale Ending inventory Quantity 8,100 5,000 15,400 12,600 15,900 13,100 8,700 REQUIRED: a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of the ending inventory according to LIFO? a. FIFO method b. LIFO method Price Inventory Cost Using formulas and cell references from the problem data, perform the required analysis. Formulas entered in the green cells orange cells. Transfer amounts to CNOWv2 for grading. $160 $300 $167 Formulas $300 $172 $300