Garrett Company has the following transactions during the months of April and May:DateTransactionUnitsCost/Unit April 1Balance300 17Purchase200$5.30 25Sale150 28Purchase100 5.80May 5Purchase250 5.30 18Sale300 22Sale50 The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.Required:1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:FIFO periodic Cost of Goods SoldEnding InventoryApril$ fill in the blank 1$ fill in the blank 2May$ fill in the blank 3$ fill in the blank 4FIFO perpetual Cost of Goods SoldEnding InventoryApril$ fill in the blank 5$ fill in the blank 6May$ fill in the blank 7$ fill in the blank 8LIFO periodic Cost of Goods SoldEnding InventoryApril$ fill in the blank 9$ fill in the blank 10May$ fill in the blank 11$ fill in the blank 12LIFO perpetual (Round your intermediate calculations to the nearest cent.) Cost of Goods SoldEnding InventoryApril$ fill in the blank 13$ fill in the blank 14May$ fill in the blank 15$ fill in the blank 16Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.) Cost of Goods SoldEnding InventoryApril$ fill in the blank 17$ fill in the blank 18May$ fill in the blank 19$ fill in the blank 20Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.) Cost of Goods SoldEnding InventoryApril$ fill in the blank 21$ fill in the blank 22May$ fill in the blank 23$ fill in the blank 242. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".AprilCost of Goods SoldEnding InventoryDifference$ fill in the blank 25$ fill in the blank 26MayCost of Goods SoldEnding InventoryDifference$ fill in the blank 27$ fill in the blank 28 3. If Garrett uses IFRS, which of the previous alternatives would be acceptable, and why?

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Answered: Garrett Company has the following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2PB: DeForest Company had the following transactions for the month. Calculate the ending inventory dollar...

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Question

Garrett Company has the following transactions during the months of April and May:

Date	Transaction	Units	Cost/Unit

April 1	Balance	300
17	Purchase	200	$5.30
25	Sale	150
28	Purchase	100	5.80
May 5	Purchase	250	5.30
18	Sale	300
22	Sale	50

The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.

Required:

1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:

FIFO periodic

Cost of Goods Sold Ending Inventory

April $ fill in the blank 1 $ fill in the blank 2

May $ fill in the blank 3 $ fill in the blank 4
FIFO perpetual

Cost of Goods Sold Ending Inventory

April $ fill in the blank 5 $ fill in the blank 6

May $ fill in the blank 7 $ fill in the blank 8
LIFO periodic

Cost of Goods Sold Ending Inventory

April $ fill in the blank 9 $ fill in the blank 10

May $ fill in the blank 11 $ fill in the blank 12
LIFO perpetual (Round your intermediate calculations to the nearest cent.)

Cost of Goods Sold Ending Inventory

April $ fill in the blank 13 $ fill in the blank 14

May $ fill in the blank 15 $ fill in the blank 16
Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.)

Cost of Goods Sold Ending Inventory

April $ fill in the blank 17 $ fill in the blank 18

May $ fill in the blank 19 $ fill in the blank 20
Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)

Cost of Goods Sold Ending Inventory

April $ fill in the blank 21 $ fill in the blank 22

May $ fill in the blank 23 $ fill in the blank 24

2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".

April	Cost of Goods Sold	Ending Inventory
Difference	$ fill in the blank 25	$ fill in the blank 26
May	Cost of Goods Sold	Ending Inventory
Difference	$ fill in the blank 27	$ fill in the blank 28

3. If Garrett uses IFRS, which of the previous alternatives would be acceptable, and why?

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