Answer P 6-5B. This is an accounting question.

P6-4B BigFish Tackle Co. Ltd. reports the following inventory transactions for its fishing rods for the month of April. The Apply perpetual FIFO ventory valuation? (a) Determine the cost of goods sold and cost of ending inventory using FIFO. (b) Assume that BigFish Tackle wants to change to the average cost formula. What guidelines must it consider before produces the higher cash flow? Unit Cost company uses a perpetual inventory system. Date Explanation Apr.1 Beginning inventory 6 Purchases 9 14 Purchases 20 Sales 28 Purchases Instructions Total Cost Units 50 35 and answer questions about effects, (LO 2,3) Sales $230 240 $11,500 (55) 8,400 245 9,800 40 (50) 30 250 7,500 making this change? ) Le the company does change to the average cost formula and prices continue to rise, would you expect the cost of goods sold and ending inventory amounts to be higher or lower than these amounts when using FIFO? Po-5B Information for BigFish Tackle Co. Ltd. is presented in P6-4B. Use the same inventory data and assume that the Apply perpetual - company uses the perpetual inventory system. Instructions de dos animation (a) Determine the cost of goods sold and cost of ending inventory using average cost. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer (b) When the company counted its inventory at the end of April , it counted only 49 rods on hand. What journal entry, if any, should the company make to record this shortage? (c) If the company had not discovered this shortage, identify what accounts would be overstated or understated and by cost and discuss (LO 2,4) be to 000.00 Bandanao what amount