2. Which statement is true regarding the purpose of using absolute cell referencing in your spreadsheet? ○ An absolute cell reference contains a dollar sign ($) in the row or column coordinate (or both) to indicate the result is a currency value. O You can use an absolute reference to keep a row and/or column constant. 3. Which statement below is true regarding the application of the three inventory costing methoods? O FIFO results in a lower gross profit when inventory costs are rising. O LIFO results in a lower gross profit when inventory costs are rising. ○ Weighted Average results in a lower gross profit when inventory costs are rising. 4. Companies can choose the most appropriate inventory costing method for their business (FIFO, LIFO, and weighted-average cost) for internal (management) reporting, but not for external and tax reporting. ○ True O False Revise your worksheet to reflect these updated assumptions and then answer the questions that follow. Sales Sale Price 22,000 units 27 Date Number of Units Unit Cost Total Cost Beginning 5,100 10.30 $52,530 March 12 6,300 10.20 64,260 June 5 5,000 10.10 50,500 October 22 Totals 10,700 9.90 105,930 27,100 $273,220 Required: 1. Use your spreadsheet to recalculate the Cost of Goods Sold, Inventory balances, and Gross Profit under each method and enter your results below: (Round your answers to the nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of Goods Sold Ending Inventory Gross Profit
2. Which statement is true regarding the purpose of using absolute cell referencing in your spreadsheet? ○ An absolute cell reference contains a dollar sign ($) in the row or column coordinate (or both) to indicate the result is a currency value. O You can use an absolute reference to keep a row and/or column constant. 3. Which statement below is true regarding the application of the three inventory costing methoods? O FIFO results in a lower gross profit when inventory costs are rising. O LIFO results in a lower gross profit when inventory costs are rising. ○ Weighted Average results in a lower gross profit when inventory costs are rising. 4. Companies can choose the most appropriate inventory costing method for their business (FIFO, LIFO, and weighted-average cost) for internal (management) reporting, but not for external and tax reporting. ○ True O False Revise your worksheet to reflect these updated assumptions and then answer the questions that follow. Sales Sale Price 22,000 units 27 Date Number of Units Unit Cost Total Cost Beginning 5,100 10.30 $52,530 March 12 6,300 10.20 64,260 June 5 5,000 10.10 50,500 October 22 Totals 10,700 9.90 105,930 27,100 $273,220 Required: 1. Use your spreadsheet to recalculate the Cost of Goods Sold, Inventory balances, and Gross Profit under each method and enter your results below: (Round your answers to the nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of Goods Sold Ending Inventory Gross Profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:2. Which statement is true regarding the purpose of using absolute cell referencing in your spreadsheet?
○ An absolute cell reference contains a dollar sign ($) in the row or column coordinate (or both) to indicate the result is a
currency value.
O You can use an absolute reference to keep a row and/or column constant.
3. Which statement below is true regarding the application of the three inventory costing methoods?
O FIFO results in a lower gross profit when inventory costs are rising.
O LIFO results in a lower gross profit when inventory costs are rising.
○ Weighted Average results in a lower gross profit when inventory costs are rising.
4. Companies can choose the most appropriate inventory costing method for their business (FIFO, LIFO, and weighted-average cost)
for internal (management) reporting, but not for external and tax reporting.
○ True
O False
Transcribed Image Text:Revise your worksheet to reflect these updated assumptions and then answer the questions that follow.
Sales
Sale Price
22,000 units
27
Date
Number of Units
Unit Cost
Total Cost
Beginning
5,100
10.30
$52,530
March 12
6,300
10.20
64,260
June 5
5,000
10.10
50,500
October 22
Totals
10,700
9.90
105,930
27,100
$273,220
Required:
1. Use your spreadsheet to recalculate the Cost of Goods Sold, Inventory balances, and Gross Profit under each method and enter
your results below: (Round your answers to the nearest whole dollar amount.)
FIFO
LIFO
Weighted
Average
Cost of Goods Sold
Ending Inventory
Gross Profit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education