Chapt6 Problem Set #2 (dus BAM, Mon 600 90 Chapt6 Problem Set Nafcun BAM. Mon Sale 2. Nov. 13 purchase 3. Dec. 20 400 2019 5B 400 90 bale 3. Mar Purchase 4, June 26 Sale 4, Dec. 18 900 62 Problem 6-68B Inventory Costing Methods Terpsichore Company uses a perpetual inventory system. For 2018 and 2019, Terpsichore has the following data: Purchase Price Sale Price Activity Units (per unit) ) (per unit) 2018 Beginning inventory 100 $45 Purch 1, Feb. 25 700 52 200 90 Required: . For each year, compute cost of goods sold, the cost of ending inventory, and bross margin using FIFO. Sale 1. Apr: 15 600 2018 $90 2019 500 56 Fost of goods sold 9,540 X 4,490 X Purchase 2, Aug 30 Sale 2, Nov. 13 Purchase 3, Dec. 20 600 90 Cost of ending wentary 3,510 X 1,820 x X 400 58 Gross margin $ 12,210 x 4,260 x 2019 400 90 Sales, Mar Purchase 4, June 28 4, Sale 4, Dec 30 For each year, compute cost of goods sold, the cost of ending inventory, and ross margin using LIFO. . 900 62 2011 90 2018 2019 Fost of goods sold 9,930 x 4,500 Cost of ending inventory Required: 1. For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using FIFO. 3,120 X 1,420 X Gross margin $ 11,820 X 4,250 X 2018 2019 Dest of goods sold 9,540 X $ 4,490 X B. 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.) Cost of ending inventory 3,510 x $ 1,820 X x Gross margin $ 12,210 X $ 4,260 x 2018 2019 cost of goods sold 9,602 X 4,491 X 2. For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using LIFO. Cost of ending Inventory 3,448 X 1,757 X 4,259 X 2018 2019 4,500 x Cost of goods sold 9,930 X $ Gross margin $ 12,148 X 5. Conceptual Connection: Which method would result in the lowest amount paid for taxes? Cost of ending inventory 3,120 x $ 1,420 x Gross margin 11,820 X $ 4,250 x IPD 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 4,491 5. Conceptual Connection: Which method produces the most realistic amount for Income? For inventory? For income LIFO for inventory EIFO $. Conceptual Connection: Compute Terpsichore's gross profit ratio and inventory turnover ratio under each of the three inventory costing methods. (Note: Round answers to two decimal places.) Dest of goods sold 9,602 x $ Cost of ending watory 3,448 X $ 1,757 x Gross margin 12,148 x $ 4,259 X FIFO Method LIPO Method Average Cast Method 2018 2019 2018 2019 2018 2014 4. Conceptual Connection: Which method would result in the lowest amount paid for taxes? ? LIPO Gross proftratio 56.14 X 48.69 X 54.34 X 48.57 X 55.85 x 9 48.68 3.59 X 1.68 X 4.04 X 1.98 X 3.66 X 1.73 Crventory urnover 5. Conceptual Connection: Which method produces the most realistic amount for income? For inventory? For income LIPO Check My Work Check My Work Previous Next Assignment Score: 1092A : fest Guatry)