1. Using the data from page 6-5 of the VLN determine the ending inventory using First in First out (FIFO)_____2. Using the data from page 6-5 of the VLN determine the ending inventory for Last In First Out (LIFO)_____3. Using the data from pages 6-5 and 6-6 of the VLN determine ending inventory for Weighted Average.______* The first picture is page 6-5 and the second picture is page 6-6 BI units x costWelghted Average Cost CUP OF COFFEEWeighted Average cost per unit =Goods Available for SaleTotal Units Available for SalePurchases occurCost assigned to units sold (WA cost per unit x units sold)10 units eWeighted Ave costNote: Inventory costing method used DOES NOT CHANGE the real economic value ofinventories..in all cases, the same units were sold; however, depending on the Inventoryvaluation method COGS and El would be different.PracticeAA Company uses a periodic inventory system. At the end of the annual accounting period theaccounting records provided the following information for product 1:UnitsCost per unit$7$8$9Total AmountBeginning InventoryPurchase, January 20Purchase, October 6$7002,4005.400$8,5001003006001,000Available for sale:AA Sold 950 units for $15 each for total sales revenue of $14,250 (950x $15 = $14,250).Determine the cost remaining in ending inventory and the cost of goods sold using FIFO, LIFOand weighted average:First in first out (FIFO)Last in First out (LIFO) Welghted Average costPrepare the income statement for the company for each inventory valuation method assumingoperating expenses are $5,000, Income taxes are 30% and there were no contra revenues.FIFOLIFOWANet Sales$14,250$14,250$14,250COGSGross profitOperating expenses5,0005,0005,000Operating income (pretax)Income tax expenseNet income-LIFO generally creates the lowest income tax expense amount...creating cash flow.-Firms that use LIFO will report a "LIFO Reserve" so their inventory can be converted to FIFOinventory for company comparison.IFO Conformity RuleImpact on Valuation Methods with changes in the price level (inflation/deflation)FIFO assigns the old inventory costs to COGS (New costs are assigned to Ending Inventory,Balance Sheet approach)LIFO assigns the old inventory costs to Ending Inventory (New cost are assigned to COGS;Income Statement approach)LIFO not allowed by IFRS (International Financial Reporting Standards)

Name: 1. Using the data from page 6-5 of the VLN determine the ending invent
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: 1. Using the data from page 6-5 of the VLN determine the ending inventory using First in First out (FIFO)_____2. Using the data from page 6-5 of the VLN determine the ending inventory for Last In First Out (LIFO)_____3. Using the data from pages 6-5