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Fulkerson Metals maintains accurate records of the inventory purchased from its suppliers and sold to customers. The records show the following purchases and sales during 2024. Date January 1 April 14 August 22 October 29 Transactions Beginning inventory Purchase Purchase Purchase January 1 to December 31 Sales ($44 each) Units 41 Unit Cost Total Cost $24 $984 64 26 1,664 114 28 3,192 79 30 298 2,370 $8,210 269 Fulkerson uses a periodic inventory system and believes there are 29 units of ending inventory. However, Fulkerson neglects to make a final inventory count at the end of the year. An employee accidentally threw out 10 units of inventory, leaving only 19 units. Fulkerson is not aware of the lost inventory. Required: 1. What amount will Fulkerson calculate for ending inventory and cost of goods sold using FIFO, assuming it erroneously believes 29 units remain in ending inventory? 2. What amount would Fulkerson calculate for ending inventory and cost of goods sold using FIFO if it knew that only 19 units remain in ending inventory? 3. What effect will the inventory error have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2024? 4. Assuming that ending inventory is correctly counted at the end of 2025, what effect will the inventory error in 2024 have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2025? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4

Fulkerson Metals maintains accurate records of the inventory purchased from its suppliers and sold to customers. The records show the following purchases and sales during 2024. Date January 1 April 14 August 22 October 29 Transactions Beginning inventory Purchase Purchase Purchase January 1 to December 31 Sales ($44 each) Units 41 Unit Cost Total Cost $24 $984 64 26 1,664 114 28 3,192 79 30 298 2,370 $8,210 269 Fulkerson uses a periodic inventory system and believes there are 29 units of ending inventory. However, Fulkerson neglects to make a final inventory count at the end of the year. An employee accidentally threw out 10 units of inventory, leaving only 19 units. Fulkerson is not aware of the lost inventory. Required: 1. What amount will Fulkerson calculate for ending inventory and cost of goods sold using FIFO, assuming it erroneously believes 29 units remain in ending inventory? 2. What amount would Fulkerson calculate for ending inventory and cost of goods sold using FIFO if it knew that only 19 units remain in ending inventory? 3. What effect will the inventory error have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2024? 4. Assuming that ending inventory is correctly counted at the end of 2025, what effect will the inventory error in 2024 have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2025? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter13: Accounting For Merchandise Inventory
Section: Chapter Questions
Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...
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Fulkerson Metals maintains accurate records of the inventory purchased from its suppliers and sold to customers. The records show the following purchases and sales during 2024. Date January 1 April 14 August 22 October 29 Transactions Beginning inventory Purchase Purchase Purchase January 1 to December 31 Sales ($44 each) Units 41 Unit Cost Total Cost $24 $984 64 26 1,664 114 28 3,192 79 30 298 2,370 $8,210 269 Fulkerson uses a periodic inventory system and believes there are 29 units of ending inventory. However, Fulkerson neglects to make a final inventory count at the end of the year. An employee accidentally threw out 10 units of inventory, leaving only 19 units. Fulkerson is not aware of the lost inventory. Required: 1. What amount will Fulkerson calculate for ending inventory and cost of goods sold using FIFO, assuming it erroneously believes 29 units remain in ending inventory? 2. What amount would Fulkerson calculate for ending inventory and cost of goods sold using FIFO if it knew that only 19 units remain in ending inventory? 3. What effect will the inventory error have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2024? 4. Assuming that ending inventory is correctly counted at the end of 2025, what effect will the inventory error in 2024 have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2025? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4
Transcribed Image Text:Fulkerson Metals maintains accurate records of the inventory purchased from its suppliers and sold to customers. The records show the following purchases and sales during 2024. Date January 1 April 14 August 22 October 29 Transactions Beginning inventory Purchase Purchase Purchase January 1 to December 31 Sales ($44 each) Units 41 Unit Cost Total Cost $24 $984 64 26 1,664 114 28 3,192 79 30 298 2,370 $8,210 269 Fulkerson uses a periodic inventory system and believes there are 29 units of ending inventory. However, Fulkerson neglects to make a final inventory count at the end of the year. An employee accidentally threw out 10 units of inventory, leaving only 19 units. Fulkerson is not aware of the lost inventory. Required: 1. What amount will Fulkerson calculate for ending inventory and cost of goods sold using FIFO, assuming it erroneously believes 29 units remain in ending inventory? 2. What amount would Fulkerson calculate for ending inventory and cost of goods sold using FIFO if it knew that only 19 units remain in ending inventory? 3. What effect will the inventory error have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2024? 4. Assuming that ending inventory is correctly counted at the end of 2025, what effect will the inventory error in 2024 have on reported amounts for (a) ending inventory, (b) retained earnings, (c) cost of goods sold, and (d) net income (ignoring tax effects) in 2025? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4
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