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.
Mist Company uses a PERIODIC inventory system. Mist had the following inventory purchases and sales during 2021:
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2021 Beginning Inventory (purchased in 2020)
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60 units @ $20 per unit
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Purchase 1 on 3/8/21 |
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140 units @ $28 per unit |
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Purchase 2 on 8/5/21 |
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50 units @ $32 per unit |
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Sales: |
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Sale 1 on 5/8/21 |
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80 units @ $90 per unit |
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Sale 2 on 9/13/21 |
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125 units @ $90 per unit |
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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.
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Specific Identification |
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Weighted Average |
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FIFO |
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LIFO |
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12/31/21 Balance Sheet |
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Inventory |
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2021 Income Statement |
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Sales |
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Cost of Goods Sold |
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Gross Profit |
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