90.2K

Verified Solution

Link Copied!

Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. TIP: Although the purchases and sales are listed in chronological orden; scrappers determines the cost of goods sold affer all of the purchases have occurred. 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the Required: following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventery and four-fiths from the a. Last-in, first-out. b. Weighted average cost. purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. c. First-in, first-out. 2. Of the four methods, which will result in the highest gross profit? Which wit result in the lowest income taxes? d. Compute the cost of goods available for sale, cost of ending inventory, and cost Specific identification method. Assume that the April 1 sale was selected one-fifth from the purchase of March 2. Assume that the sale of August 1 was selected from Unit" anwers to 2 decimal places.)

Answer & Explanation Solved by verified expert

See Answer