LIFO/FIFO/Average Cost under Periodic and Perpetual Inventory Systems Spelling Company had the following transactions in connection with their inventory account during the month of August: PURCHASES SALES Units Unit Cost Units Unit Cost 1-Aug 3-Aug 7-Aug 11-Aug 16-Aug 23-Aug 675 $ 4-Aug 10-Aug 12-Aug 17-Aug 20-Aug 25-Aug 8.10 250 $ 12.60 690 8.25 345 12.60 1180 8.40 825 13.00 610 8.50 630 13.00 510 8.55 840 13.50 650 8.60 635 13.50 4315 3525 Instructions: 1. Calculate the total number of ending inventory units. (This number will be used for all methods and assumptions) 2. a. Assuming that the company keeps perpetual records in units only; compute the inventory at August 31, using (1) LIFO; (2) FIFO and (3) average cost. (the periodic method) b. Assuming that perpetual records are kept in dollars, compute the inventory at August 31, using (1) LIFO; (2) FIFO and (3) average cost. (the perpetual method) c. Calculate the cost of goods sold Spelling Company should record for the month of August assuming the periodic inventory method for (1) LIFO; (2) FIFO and (3) average cost. d. Calculate the cost of goods sold Spelling Company should record for the month of August assuming the perpetual inventory method for (1) LIFO; (2) FIFO and (3) average cost. You are to create worksheets within this document that calculate the requested information provided for above. I must see your work in order to give full credit. Solutions to Application Assignment #3 Student Name: 1. Total Ending Inventory Units: Ending Inventory (periodic): 2 a) LIFO FIFO Average Cost Ending Inventory (perpetual): 2 b) LIFO FIFO Average Cost Cost of Goods Sold (periodic): 2 c) LIFO FIFO Average Cost Cost of Goods Sold (perpetual): 2 d) LIFO FIFO Average Cost BONUS (2 points each) Gross Profit (periodic) LIFO FIFO