Alternative Inventory MethodsGarrett Company has the following transactions during the months of April and May: DateTransactionUnitsCost/Unit April 1Balance400 17Purchase200$5.50 25Sale150 28Purchase100 5.75May 5Purchase250 5.50 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$$May$$FIFO perpetual Cost of Goods SoldEnding InventoryApril$$May$$LIFO periodic Cost of Goods SoldEnding InventoryApril$ $ May$ $ LIFO perpetual (Round your intermediate calculations to the nearest cent.) Cost of Goods SoldEnding InventoryApril$ $ May$ $ Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.) Cost of Goods SoldEnding InventoryApril$ $ May$ $ Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.) Cost of Goods SoldEnding InventoryApril$ $ May$ $ 2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".AprilCost of Goods SoldEnding InventoryDifference$ $ MayCost of Goods SoldEnding InventoryDifference$ $

Name: Alternative Inventory MethodsGarrett Company has the following transac
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Description: Alternative Inventory MethodsGarrett Company has the following transactions during the months of April and May: DateTransactionUnitsCost/Unit April 1Balance400 17Purchase200$5.50 25Sale150 28Purchase100 5.75May 5Purchase250 5.50

First-in-First-Out (FIFO): In First-in-First-Out method, the costs of the initially purchased…

Answered: Required: 1. Compute the inventories…

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 12E: Alternative Inventory Methods Park Companys perpetual inventory records indicate the following...

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Alternative Inventory Methods

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

Date	Transaction	Units	Cost/Unit

April 1	Balance	400
17	Purchase	200	$5.50
25	Sale	150
28	Purchase	100	5.75
May 5	Purchase	250	5.50
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 $ $

May $ $
FIFO perpetual

Cost of Goods Sold Ending Inventory

April $ $

May $ $
LIFO periodic

Cost of Goods Sold Ending Inventory

April $ $

May $ $
LIFO perpetual (Round your intermediate calculations to the nearest cent.)

Cost of Goods Sold Ending Inventory

April $ $

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

Cost of Goods Sold Ending Inventory

April $ $

May $ $
Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)

Cost of Goods Sold Ending Inventory

April $ $

May $ $

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	$	$
May	Cost of Goods Sold	Ending Inventory
Difference	$	$

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