Question

6 Part 1: Prepare solution to exercise in Excel. 7 Use the features of Excel (as demonstrated in class) and provide a schedule to determine required items (a) and (b) below. 8. Your grade for this assignment will reflect not only the correct solution but also presentation and use of Excel features to arrive at the correct solution 9 The first month of Petit Company's detailed inventory records indicated the following: of Units 1200 700 Cost/Sale 3.10 7.00 12 Date Transaction 13 1/2/2020 Purchase 141 /7/2020 Sale 15 1/10/2020 Purchase 16 1/13/2020 Sale 1/18/2020 Purchase 1/18/2020 Sale 1/20/2020 Sale 1/23/2020 Purchase 1/26/2020 Sale 1/28/2020 Purchase 1/31/2020 Sale 26 Required: 27 (a) Measure the value of ending inventory (to the nearest dollar) based on LIFO under a perpetual inventory system 28 (b) Measure the gross margin 30 Part 2: Use of the FASB Accounting Standards Codification (ASC): 31 Questions to be answered using the FASB Accounting Standards Codification (ASC): 32 Answers that receive full credit must reflect 33 (o the appropriate citation from the ASC 34 b) the use of your own words rather than the text or the ASC to provide the simplest and clearest answer to the question 36 1. What is the primary basis of accounting for inventory and what does it mean to apply this basis to inventory 38 2 Briefly discuss the factors responsible for the general acceptance of cost How assumptions such as UFO or FIFO. 40 3. Briefly discuss the circumstances under which the the cost basis would not provide a proper matching of costs to revenues Sheet1 Sheet2 Sheet ho

Answer 1

Data Receipts sy units costlu Ending inventory units costlu total соя Units cost total ($) Co (9) 2020 1200 3.10 01/02 01407 700 3.10 2170 1200 500 500 1 600 3.25 500 3.25 1625 310 340 310 3.25 3.10 3.25 3.10 3.25 34 3.1 3720 1550 1550 1950 1550 325 1550 325 2380 G20 018 | 1000 3.4 300 500 100 500 100 700 200 34 1020 05/20 700 3.4 2380 100 3.25 325 300 34) 930 01/23 1200 3.5 800 3,5 2800 1600 3.55 200 3.1 620 1300 3.5 4550 200 3.1 620 500 3.5 1750 200 31 620 500 3.5 17.50 1600 3.55 5680 2003:1 620 500 3.5 1750 1 340 3.55 1207| 1260 3.55 4473

Total cost of goods sold a total of issues 2 $ 693$ 15723 value of closing stock under LIFO method z $60+ 1750 + 1207 - $3577 Total sales a 700 unit @ $ 7 $4900 500 @ 71 : 3550 300 @ 7 7 e 2310 1100 @ 77 & 8470 500 @ 8.2 e 6560 1260 @ 9.2 e 10332 $36122 Gross margin z Gross profit | sales x 100 Gross profit & Sales - Cous - 2 $36122-- $15723 2 $ 20399 jes Gross margin z $ 20399 $36122x100 - 56.47%