Question: Can you please explain what I'm doing wrong for specific identification on cost of goods sold and gross profit and provide the correct answers. Required
Can you please explain what I'm doing wrong for specific identification on cost of goods sold and gross profit and provide the correct answers.
Required information [The following information applies to the questions displayed below.] At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $16 per unit: Transactions Inventory, January 1 Purchase, January 12 Purchase, January 26 Sale Sale Units 500 600 160 (370) (250) Amount $2,365 3,600 1,280 Required: 1a. Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 1b. Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (C) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B DONNER COMPANY Partial Income Statement For the Month Ended January 31, Current Year (a) (b) (c) (d) Average FIFO LIFO Specific Cost Identification $ 9,920 $ 9,920 $ 9,920$ $ 9,920 $ 3,565 $ 3,085 $ 4,040$ 3,276 $ 6,355 $ 6,835 $ 5,880 $ $ 6,645 Sales revenue Cost of goods sold Gross profit
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
