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Garrett Company has the following transactions during the months of April and May: Date Transaction Units Cost/Unit   April 1 Balance 300         17 Purchase 200 $5.30       25 Sale 150         28 Purchase 100  5.80 May 5 Purchase 250  5.30       18 Sale 300         22 Sale 50     The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions. Required: 1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives: FIFO periodic   Cost of Goods Sold Ending Inventory April $  fill in the blank 1 $  fill in the blank 2 May $  fill in the blank 3 $  fill in the blank 4 FIFO perpetual   Cost of Goods Sold Ending Inventory April $  fill in the blank 5 $  fill in the blank 6 May $  fill in the blank 7 $  fill in the blank 8 LIFO periodic   Cost of Goods Sold Ending Inventory April $  fill in the blank 9 $  fill in the blank 10 May $  fill in the blank 11 $  fill in the blank 12

Garrett Company has the following transactions during the months of April and May: Date Transaction Units Cost/Unit   April 1 Balance 300         17 Purchase 200 $5.30       25 Sale 150         28 Purchase 100  5.80 May 5 Purchase 250  5.30       18 Sale 300         22 Sale 50     The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions. Required: 1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives: FIFO periodic   Cost of Goods Sold Ending Inventory April $  fill in the blank 1 $  fill in the blank 2 May $  fill in the blank 3 $  fill in the blank 4 FIFO perpetual   Cost of Goods Sold Ending Inventory April $  fill in the blank 5 $  fill in the blank 6 May $  fill in the blank 7 $  fill in the blank 8 LIFO periodic   Cost of Goods Sold Ending Inventory April $  fill in the blank 9 $  fill in the blank 10 May $  fill in the blank 11 $  fill in the blank 12

FINANCIAL ACCOUNTING
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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Garrett Company has the following transactions during the months of April and May:

Date Transaction Units Cost/Unit
 
April 1 Balance 300  
      17 Purchase 200 $5.30
      25 Sale 150  
      28 Purchase 100  5.80
May 5 Purchase 250  5.30
      18 Sale 300  
      22 Sale 50  

 

The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.

Required:

1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:

  1. FIFO periodic
      Cost of Goods Sold Ending Inventory
    April $  fill in the blank 1 $  fill in the blank 2
    May $  fill in the blank 3 $  fill in the blank 4
  2. FIFO perpetual
      Cost of Goods Sold Ending Inventory
    April $  fill in the blank 5 $  fill in the blank 6
    May $  fill in the blank 7 $  fill in the blank 8
  3. LIFO periodic
      Cost of Goods Sold Ending Inventory
    April $  fill in the blank 9 $  fill in the blank 10
    May $  fill in the blank 11 $  fill in the blank 12
  4. LIFO perpetual (Round your intermediate calculations to the nearest cent.)
      Cost of Goods Sold Ending Inventory
    April $  fill in the blank 13 $  fill in the blank 14
    May $  fill in the blank 15 $  fill in the blank 16
  5. Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.)
      Cost of Goods Sold Ending Inventory
    April $  fill in the blank 17 $  fill in the blank 18
    May $  fill in the blank 19 $  fill in the blank 20
  6. Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)
      Cost of Goods Sold Ending Inventory
    April $  fill in the blank 21 $  fill in the blank 22
    May $  fill in the blank 23 $  fill in the blank 24


2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".

April Cost of Goods Sold Ending Inventory
Difference $  fill in the blank 25 $  fill in the blank 26
May Cost of Goods Sold Ending Inventory
Difference $  fill in the blank 27 $  fill in the blank 28

 

3. If Garrett uses IFRS, which of the previous alternatives would be acceptable, and why?

 

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