Show how Mist's Balance Sheet and Income Statement would look under each of the inventory cost flow assumptions.  Compute Ending Inventory, Sales, COGS, and Gross Profit under Specific Identification, Weighted Average Cost, FIFO and LIFO. Fill in your answers on the table below. SHOW YOUR WORK. Round per unit cost to the nearest cent.

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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Mist Company uses a PERIODIC inventory system. Mist had the following inventory purchases and sales during 2021:

2021 Beginning Inventory (purchased in 2020)

 

Purchases:

 

60 units @ $20 per unit

 

Purchase 1 on 3/8/21

 

140 units @ $28 per unit

Purchase 2 on 8/5/21

 

50 units @ $32 per unit

 

 

 

Sales:

 

 

Sale 1 on 5/8/21

 

80 units @ $90 per unit

Sale 2 on 9/13/21

 

125 units @ $90 per unit

          

 

Of the items sold on 5/8/2021, 60 units were from the beginning inventory and 20 units were from 3/8/21 purchase. The 9/13/21 sale included 85 units from the 3/8/21 purchase and 40 units from the 8/5/21 purchase. 

 

Show how Mist's Balance Sheet and Income Statement would look under each of the inventory cost flow assumptions.  Compute Ending Inventory, Sales, COGS, and Gross Profit under Specific Identification, Weighted Average Cost, FIFO and LIFO. Fill in your answers on the table below. SHOW YOUR WORK. Round per unit cost to the nearest cent.

 

 

Specific Identification

 

Weighted Average

 

FIFO

 

LIFO

 

12/31/21 Balance Sheet

 

 

 

 

 

 

 

 

 

     Inventory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021 Income Statement

 

 

 

 

 

 

 

 

 

     Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Cost of Goods Sold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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