estions 1 bartlebyCengageNOWv21Onlin X+v>https://v2.cengagenow.com/ilm/takeAssignment/takeAssignment Main.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take&inprogres* 2.Chapter 7 HomeworkeBookCalculatorPrint ItemAlternative Inventory Methods1. PR.07.02Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows:2. PR.07.01.ALGOProductionSales3. EX.07.15TotalUnits in EndingSalesUnitsUnitsCostsRevenueInventory4. EX.07.13.ALGO2018$200,000100,000$400,00080,00020,0002019120,000234,000 110,0005. EX.07.11550,00030,0002020247,000 150,000130,00010,000750,0006. PR.07.072021130,000240,500 120,00020,000600,000Required:1. Determine the gross profit for each year under each of the following periodic inventory methods:2018201920202021a. FIFO (Round unit costs to 2decimal places, if required.)b. LIFO (Round unit costs to 2decimal places, if required.)c. Weighted Average (Round unitcosts to 3 decimal places andyour final answers to thePreviousNextCheck My Work8 more Check My Work uses remaining.Progress: 3/6 items2:58 PMBA 4))O Type here to search2910/27/2019hp64

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Asked Oct 27, 2019
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Habicht company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows:

estions 1 bartleby
CengageNOWv21Onlin X
+v
>
https://v2.cengagenow.com/ilm/takeAssignment/takeAssignment Main.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take&inprogres
* 2.
Chapter 7 Homework
eBook
Calculator
Print Item
Alternative Inventory Methods
1. PR.07.02
Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows:
2. PR.07.01.ALGO
Production
Sales
3. EX.07.15
Total
Units in Ending
Sales
Units
Units
Costs
Revenue
Inventory
4. EX.07.13.ALGO
2018
$200,000
100,000
$400,000
80,000
20,000
2019
120,000
234,000 110,000
5. EX.07.11
550,000
30,000
2020
247,000 150,000
130,000
10,000
750,000
6. PR.07.07
2021
130,000
240,500 120,000
20,000
600,000
Required:
1. Determine the gross profit for each year under each of the following periodic inventory methods:
2018
2019
2020
2021
a. FIFO (Round unit costs to 2
decimal places, if required.)
b. LIFO (Round unit costs to 2
decimal places, if required.)
c. Weighted Average (Round unit
costs to 3 decimal places and
your final answers to the
Previous
Next
Check My Work
8 more Check My Work uses remaining.
Progress: 3/6 items
2:58 PM
B
A 4))
O Type here to search
29
10/27/2019
hp
64
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estions 1 bartleby CengageNOWv21Onlin X +v > https://v2.cengagenow.com/ilm/takeAssignment/takeAssignment Main.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take&inprogres * 2. Chapter 7 Homework eBook Calculator Print Item Alternative Inventory Methods 1. PR.07.02 Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows: 2. PR.07.01.ALGO Production Sales 3. EX.07.15 Total Units in Ending Sales Units Units Costs Revenue Inventory 4. EX.07.13.ALGO 2018 $200,000 100,000 $400,000 80,000 20,000 2019 120,000 234,000 110,000 5. EX.07.11 550,000 30,000 2020 247,000 150,000 130,000 10,000 750,000 6. PR.07.07 2021 130,000 240,500 120,000 20,000 600,000 Required: 1. Determine the gross profit for each year under each of the following periodic inventory methods: 2018 2019 2020 2021 a. FIFO (Round unit costs to 2 decimal places, if required.) b. LIFO (Round unit costs to 2 decimal places, if required.) c. Weighted Average (Round unit costs to 3 decimal places and your final answers to the Previous Next Check My Work 8 more Check My Work uses remaining. Progress: 3/6 items 2:58 PM B A 4)) O Type here to search 29 10/27/2019 hp 64

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Expert Answer

Step 1

a. Compute gross profit under FIFO method for four years as shown below:

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Gross profit for 2018 Sales revenue-Cost of goods sold $200,000 - $400,000- x 80,000 100,000 $240,000 Gross profit for 2019 = Sales revenue-Cost of goods sold $234,000 $200,000 x 20, 000+ = $550,000- 90, 000 100,000 120,000 = $24,500 Gross profit for 2020 Sales revenue-Cost of goods sold $247,000 $234,000 x120, 000 =$750,000- x30, 000 120, 000 130,000 $463,500 Gross profit for 2021 Sales revenue- Cost of goods sold $247,000 $240,500 - $600,000- -x110,000 10,000 130, 000 130,000 =$222, 500

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Step 2

b. Compute gross profit under LIFO method for four years as shown below:

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Gross profit for 2018 = Sales revenue- Cost of goods sold $200,000 - $400,000- -x 80, 000 100,000 $240, 000 Gross profit for 2019 Sales revenue- Cost of goods sold $234,000 x110, 000 -$550,000- 120,000 =$335, 500 Gross profit for 2020 Sales revenue-Cost of goods sold $247,000 130, 000 $234,000 x130, 000 + x 10,000 120, 000 = $750,000- $200,000 + -x 10,000 100,000 = $463,500 Gross profit for 2021=Sales revenue-Cost of goods sold $240,500 $600,000- x 120,000 130,000 = $378,000

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Step 3

c. Compute gross profit under weighted method for...

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2018 2020 Particulars 2019 2021 $400,000.00 S550,000.00 S750,000.00 $600,000.00| Less: Cost of goods sold $160,000.00 $215,285.71 $286,607.14 $222,520.41 $240,000.00 S334,714.29 $463,392.86 $377,479.59 Sales Gross profit

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