Please tell me how do we get 150 from ''units from March 2 purchased''? Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costingmethod at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the followinginformation at the end of the annual accounting period, December 31.UnitTransactionsUnitsCostBeginning inventory, January 1Transactions during the year:a. Purchase on account, March 2b. Cash sale, April 1 ($46 each)c. Purchase on account, June 30d. Cash sale, August 1 ($46 each)200$3030032(350)25036(50)TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of thepurchases have occurred.Required:1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of thefollowing inventory costing methods:a. Last-in, first-out.b. Weighted average cost.c. First-in, first-out.d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from thepurchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30.2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below.Req 1AReq 1BReq 10Req 1DReq 2AReq 2Ba. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using theLIFO method. (Round "Cost per Unit" anwers to 2 decimal places.)CostLIFO (Periodic)UnitsTotalperUnitBeginning Inventory200$ 30.00 O $ 6,000Purchases$ 32.00$ 36.00March 2300June 30250Total Purchases55018,600Goods Available for Sale75024,600Cost of Goods SoldUnits from Beginning InventoryUnits from March 2 Purchase150$ 32.00Units from June 30 Purchase250$ 36.00Total Cost of Goods Sold40013,800Ending Inventory350$10,800< Req 1AReq 1B >

As the name suggest, under LIFO the inventory purchased last is sold first. Moreover, under LIFO…

Unit Transactions Units Cost Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($46 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($46 each) 200 $30 300 32 (350) 250 36 (50)

Unit Transactions Units Cost Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($46 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($46 each) 200 $30 300 32 (350) 250 36 (50)

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...

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