Question

Current Anemprin Progress Crane Sports began operations on January 2, 2020. The following stock record card for footballs was taken from the records at the end of the year. Units Received Unit Invoice Cost $22 Gross Invoice Amount $1,122 1,188 Date 1/15 3/15 6/20 9/12 11/24 Voucher 10624 11437 21332 27644 31269 Totals Terms Net 30 1/5, net 30 1/10, net 30 1/10, net 30 1/10, net 30 1,547 1,105 924 $5.886 77 370 A physical inventory on December 31, 2020, reveals that 108 footballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Crane Football Shop uses the invoice price less discount for recording purchases. Compute the December 31, 2020, inventory using the FIFO method. (Round per unit and final answer to 2 decimal paces, eg. 35.57.) Ending Inventory using the FIFO method $ e Textbook and Media A 4 8:59 AM 1/23/2020

how can I solve these two questions?

Answer 1

54 (a) Compute the December 31, 2020, inventory using the FIFO method. Units (A) 51 Date Particulars 15-Jan Beg. Inventory 15-Mar Purchase 20-Jun Purchase 12-Sep Purchase 24-Nov Purchase Total units Available for sale Per Unit (B) 22.00 17.82 16.83 12.87 11.88 Total Cost (A*B) 1,122.00 1,176.12 1,531.53 1,093.95 914.76 5,838.36 85 370 Under FIFO method the goods which have been received earlier will be issued first. It is given in the question that ending invenory consists of 108 units which means the company has issued all the inventory upto 20 June and has issued only 54 units from 12th Sept. purchases. Units (A) Date Particulars 15-Jan Beg. Inventory 15-Mar Purchase 20-Jun Purchase 12-Sep Purchase Total Cost of goods sold Per Unit (B) 22.00 17.82 16.83 12.87 Total Cost (A*B) 1,122 1,176 1,532 695 4524.63 54 262 Units (A) 31 Date Particulars 12-Sep Purchase 24-Nov Purchase Ending Inventory using the FIFO method Per Unit (B) 12.87 11.88 Total Cost (A*B) 398.97 914.76 1,313.73 77 108

80 (b) Compute the 2014 cost of goods sold using the LIFO method. 81 Units (A) 91 Date Particulars 15-Mar Purchase 20-Jun Purchase 12-Sep Purchase 24-Nov Purchase Total Cost of goods sold using the LIFO method Per Unit(B) 17.82 16.83 12.87 11.88 Total Cost (A+B) 160.38 1,531.53 1,093.95 914.76 3700.62 86 87 88 77 262 90 (c) What method would you recommend to the owner to minimize income taxes in 2014, using the inventory information for footballs as a guide? 92 FIFO