Chapt6 Problem Set #2 (BAM, M 019 4, Dec. 18 450 $2 equired: For each year, compute cost of goods sold, the cost of ending inventory, and ross margin using FIFO. 2018 2019 of goods sold 3.510 For each year, compute cost of goods sold, the cost of ending inventory, and ross margin using LIFO. 2018 2019 3.130 1,420 4,350 For each year, compute cost of goods sold, the cost of ending inventory, and ross margin using the average cost method. (Note: Use four decimal places for er-unit calculations and round all other numbers to the nearest dollar.) 9,603 X 3,448 x 2019 Conceptual Connection: Which method would result in the lowest amount paid or taxes? Conceptual Connection: Which method produces the most realistic amount for come? For inventory? Conceptual Connection: Compute Terpsichore's gross profit ratio and inventory urnover ratio under each of the three inventory costing methods. (Note: Round nswers to two decimal places.) FIFO Method LIM Average Cost Method 2018 2019 2018 2019 2018 2010 1. Be sure to pay attention to whether the question asks for cost of goods sold or ending inventory Check My W Chapt 6 Problem Set #2 (due 8AM, Mon Problem 6-68B Inventory Costing Methods Terpsichore Company uses a perpetual inventory system. For 2018 and 2019, Terpsichore has the following data: Activity Purchase Price Sale Price Units (per unit) (per unit) 2018 Beginning inventory 100 $45 Purchase 1, Feb. 25 700 52 Sale 1, Apr. 15 600 $90 Purchase 2, Aug. 30 500 56 Sale 2, Nov. 13 600 90 Purchase 3, Dec. 20 400 58 2019 Sale 3, Mar. 8 400 90 Purchase 4, June 28 900 62 Sale 4, Dec. 18 200 90 Required: 1. For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using FIFO. 2018 2019 Cost of goods sold 9,540 X 4,490 X Cost of ending inventory 3,510 X 1,820 Gross margin 12,210 X 4,260 X 2. For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using LIFO. 2018 2019 Cost of goods sold 9,930 X 4,500 X Cost of ending inventory 3,120 X 1,420 X Gross margin 11,820 X 4,250 X 3. For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2018 2019 Cost of goods sold 9,602 X 4,491 X Cost of ending inventory 3,448 X 1,757 x Gross margin 12,148 X 4,259 X 4. Conceptual Connection: Which method would result in the lowest amount paid for taxes? LIFO - 5. Conceptual Connection: Which method produces the most realistic amount for income? For inventory? For income Check My Work LIFO Previous Next >