Based on the following data, make a comparison between the use of the flow of inventory costs assumptions with the FIFO and LIFO methods and provide an overview of why in the end LIFO should not be used. (on the image below)Create Schedules of COGS using the following format:(replace XXX with the correct number from your calculation) ScheduleSales ($5 per unit)СOGSGross Margin$Sch 1$$200,000$128,50071,500Sch 2200,000$125,000$75,000Calculation COGSUnitsCost per unitTotal CostBeginning Inventory, jan 1Purchase, Jan 10Purchase, Jan 3012,000$3.00$36,0009,000$3.20$28,8009,000$3.25$29,250Purchase, Feb 1111,000$3.30$36,300Purchase, March 1712,000$3.40$40,800 XYZ CompanySchedules of COGSFor November Schedule 2020Schedule 1Schedule 2FIFOLIFOBeginning Inventory$ XXXSxxPlus: PurchasesXXXXXXCOGS for salesless: Ending inventoryXXXXXXXXXXXXCOGSXXXXXXSchedules Computing Ending InventoryBeginning InventoryPlus: PurchasesUnit available for saleless: SalesEnding inventoryUnitsXXXХххXxxХххXXXCalculation for two assumptionFIFO (SCH 1)12,0004.4052,8003,0004.3012,90065,700LIFO (SCH 2)10,0004.0040,0005,0004.2021,00061,000

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Description: Based on the following data, make a comparison between the use of the flow of inventory costs assumptions with the FIFO and LIFO methods and provide an overview of why in the end LIFO should not be used. (on the image below)Create Schedules of COGS u

FIFO: Under this method, the inventory that is bought first is to be sold first. Thus the ending…

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Based on the following data, make a comparison between the use of the flow of inventory costs assumptions with the FIFO and LIFO methods and provide an overview of why in the end LIFO should not be used. (on the image below) Create Schedules of COGS using the following format: (replace XXX with the correct number from your calculation)

Based on the following data, make a comparison between the use of the flow of inventory costs assumptions with the FIFO and LIFO methods and provide an overview of why in the end LIFO should not be used. (on the image below) Create Schedules of COGS using the following format: (replace XXX with the correct number from your calculation)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 16E: Dollar-Value LIFO A company adopted the LIFO method when its inventory was 1,800. One year later its...

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