Attached are the spreadsheet and numbers from problem for numbers to be placed E7-10Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, thefollowing transactions occurred:LO 7.5DateTransactionUnitsCost/UnitNovember$3.50Balance8.1SalePurchasePurchase500350300134.00200150215.00SHOWME HOW28SaleRequired:1. Compute the cost of goods sold for November and the inventory at the end of November for each of thefollowing cost flow assumptions:a.FIFOb. LIFOc.Average cost2. Next Level What can you conclude about the effects of the inventory cost flow assumptions on the financialstatements?マワ11AltornMethode Porkthe follouing transas Copy of ET_Ex07-10_Wahlen_Inte...E7-10E7-10Name:Complete the schedule below by filling in the shaded cells.An asterisk (*) will appear before an incorrect amount in specific cells.1aFIFO:Ending Inventory (500 units)unitsunits@Cost of Goods Sold (500 units):Beginning InventoryPurchases+ Ending InventoryCost of Goods SoldEnding Inventory (500 units)@bLIFO:unitsCost of Goods Sold (500 units):Beginning InventoryPurchasesEnding InventoryCost of Goods SoldWeighted Average:Goods Available for Sale:units@units@units@Cost of Goods Available for SaleUnits Available for SaleAverage CostEnding InventoryCost of Goods Sold:Beginning InventoryPurchases+ Ending InventoryCost of Goods Sold+%3D2. Examine the ending inventory amounts and compare and contrast between the three methods in belowtext box. However it will not be graded.

Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

E7-10 Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the following transactions occurred: LO 7.5 Date Transaction Units Cost/Unit November 1 Balance 8 Sale Purchase 500 $3.50 350 300 200 150 13 21 Purchase 28 Sale 4.00 5.00 SHOW ME HOW Required: 1. Compute the cost of goods sold for November and the inventory at the end of November for each of the following cost flow assumptions: a. FIFO b. LIFO . Average cost 2. Next Level What can you conclude about the effects of the inventory cost flow assumptions on the financial statements?

E7-10 Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the following transactions occurred: LO 7.5 Date Transaction Units Cost/Unit November 1 Balance 8 Sale Purchase 500 $3.50 350 300 200 150 13 21 Purchase 28 Sale 4.00 5.00 SHOW ME HOW Required: 1. Compute the cost of goods sold for November and the inventory at the end of November for each of the following cost flow assumptions: a. FIFO b. LIFO . Average cost 2. Next Level What can you conclude about the effects of the inventory cost flow assumptions on the financial statements?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11E: Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the...

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Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
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Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the following transactions occurred: Required: 1. Compute the cost of goods sold for November and the inventory at the end of November for each of the following cost flow assumptions: a. FIFO b. LIFO c. Average cost 2. Next Level What can you conclude about the effects of the inventory cost flow assumptions on the financial statements?
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Alternative Inventory Methods Park Companys perpetual inventory records indicate the following transactions in the month of June: Required: 1. Compute the cost of goods sold for June and the inventory at the end of June using each of the following cost flow assumptions: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places and other amounts to the nearest dollar.) 2. Next Level Why are the cost of goods sold and ending inventory amounts different for each of the three methods? What do these amounts tell us about the purchase price of inventory during the year? 3. Next Level Which method produces the most realistic amount for net income? For inventory? Explain your answer. 4. Next Level If Park uses IFRS, which of the previous alternatives would be acceptable and why?
( Appendix 6B) Inventory Costing Methods: Periodic Inventory Systems. Refer to the information for Tyler Company in Brief Exercise 6-35 and assume that the company uses the periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest whole dollar.)
Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following data available for inventory, purchases, and sales for a recent year. Required: 1. Compute the cost of ending inventory and the cost of goods sold using the specific identification method. Assume the ending inventory is made up of 40 units from beginning inventory, 30 units from Purchase 1, 80 units from Purchase 2, and 40 units from Purchase 3. 2. Compute the cost of ending inventory and cost of goods sold using the FIFO inventory costing method. 3. Compute the cost of ending inventory and cost of goods sold using the LIFO inventory costing method. 4. Compute the cost of ending inventory and cost of goods sold using the average cost inventory costing method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 5. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all four methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?