Answer the following questions for this example:

Which method provides the highest net income?

Which method provides the largest asset value on the Balance Sheet?

Are your answers to the above 2 questions always true? Explain.

Which method would you choose? Explain.

B o D E F G B E G Description (Shelves) # of Units Cost per unit Total cost Description Beginning inventory Jan 15 purchase Jan 20 purchase D LIFO Ending Inventory # of Units Cost per unit 20 $ 20.00 $ 18 $ 25.00 $ 0$ 33.00 $ Total cost 400.00 450.00 400.00 Beginning inventory Jan 15 purchase 20 $ 20.00 $ 25 $ 25.00 $ 625.00 850.00 Jan 20 purchase Total Inventory January Sales Ending Inventory **Use formulas for these cells 35 $ 33.00 $ 1,155.00 80 $ 2,180.00 42 answer will be on 38 each schedule below Description Jan 20 purchase Jan 15 purchase Beginning inventory $ LIFO Cost of Goods Sold # of Units Cost per unit 35 $ 33.00 $ 7 $ 25.00 $ 0 $ 20.00 $ Total cost 1,155.00 175.00 $ 1,330.00 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Calculate the Ending Inventory and Cost of Goods Sold using Periodic Weighted Average REQ. B INVENTORY COSTING SCHEDULES Link or reference back to the description, units and cost on the master record Calculate the Ending Inventory and Cost of Goods Sold using Periodic FIFO Description Ending Inventory WEIGHTED AVERAGE Ending Inventory # of Units Cost per unit 38 $ 27.25 Total cost $ 1,035.50 Description Jan 20 purchase Jan 15 purchase Beginning inventory FIFO Ending Inventory #of Units Cost per unit 35 $ 33.00 $ 3 $ 25.00 $ 0 $ 20.00 $ Total cost 1,155.00 75.00 $ 1,035.50 Description January Sales WEIGHTED AVERAGE Cost of Goods Sold # of Units Cost per unit 42 $ 27.25 Total cost $ 1,144.50 Description Beginning inventory Jan 15 purchase Jan 20 purchase $ 1,230.00 FIFO Cost of Goods Sold # of Units Cost per unit Total cost 20 $ 20.00 $ 400.00 22 S 25.00 S 550.00 0$ 33.00 $ 65 66 67 $ 950.00 68 69 70 Calculate the Ending Inventory and Cost of Goods Sold using Periodic LIFO 71 $ 1,144.50