Bears, Inc. began the year with merchandise inventory of 50 sofas that each cost $500. During...

 

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Bears, Inc. began the year with merchandise inventory of 50 sofas that each cost $500. During January, Bears purchased and sold merchandise on account as follows: Jan. 5 Purchase 15 sofas @ $520 ea. Jan. 10 Jan. 20 Sale Purchase Sale 45 sofas 20 sofas at $535 ea. 25 sofas Jan. 25 Determine the COGS sold and ending inventory values under FIFO, LIFO and weighted-average (round to 2 decimals). Additionally, determine the inventory method with the highest and lowest COGS as well as the highest and lowest value of ending inventory. You will need to prepare a perpetual inventory chart for this problem (see text exhibits for examples). Remember to provide an explaination - here explain why you are selecting the units sold at a particular price point under each method and why it is different under each method. Bears, Inc. began the year with merchandise inventory of 50 sofas that each cost $500. During January, Bears purchased and sold merchandise on account as follows: Jan. 5 Purchase 15 sofas @ $520 ea. Jan. 10 Jan. 20 Sale Purchase Sale 45 sofas 20 sofas at $535 ea. 25 sofas Jan. 25 Determine the COGS sold and ending inventory values under FIFO, LIFO and weighted-average (round to 2 decimals). Additionally, determine the inventory method with the highest and lowest COGS as well as the highest and lowest value of ending inventory. You will need to prepare a perpetual inventory chart for this problem (see text exhibits for examples). Remember to provide an explaination - here explain why you are selecting the units sold at a particular price point under each method and why it is different under each method.