Comparing Inventory Costing Methods using Excel's Basic Math Functions and Cell References Better Bottles, Inc. uses a periodic inventory system and has provided its current inventory Information. The Controller has as you to prepare a comparison of the Ending Inventory and Cost of Goods Sold totals for three different inventory costing methods: Periodic FIFO, LIFO, and Weighted Average. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. . Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell. "B5" was entered, the formula would output the result from cell B5, or 27 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: (plus sign to add), (minus sign to subtract). (asterisk sign to multiply), and/ (forward slash to divide). From the Excel Simulation below, if in a blank cell "B4+B5" was entered, the formula would add the values from those cells and output the result, or 47 in this example. If using the other math symbols the result would output an appropriate answer for its function. SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell SUM(C4,C5.C6) was entered, the formula would output the result of adding those three separate cells, or $72.00 in this example. Similarly, if in a blank cell"-SUM(C4:C6)" was entered. the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be $72.00 in this example. FILE HOME INSERT PAGE LAYOUT Inventory costing methods-Excel FORMULAS ? 00 DATA REVIEW VIEW Sign In * Calibri A A % Pete BIU- A-Alignment Number Conditional Format as Cell Formatting Table Styles Cells Editing Inventory costing methods Excel 70 FORMULAS DATA REVIEW VIEW Sign In M A-Alignment Number Conditional Format as Cell Formatting Table Styles- Cells Editing FILE HOME INSERT PAGE LAYOUT Calibri A A Ba- Paste BIM- Clipboant 823 Font X " -84 A C Styles D 1 Better Bottles, Inc., uses a periodic inventory system and has the following information available: 2 3 Description 4 Beginning Inventory 5 Jan. 15 Purchase 6 Jan. 20 Purchase 7 Goods Available for Sale 8 Less: January Sales 9 Ending Inventory 10 # of Units 20 $ Cost per Unit 20.00 $ Total Cost 400.00 27 22.00 594.00 33 30.00 990.00 80 S 1,984.00 36 44 11 12 Required: 13 1) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic FIFO. 14 15 FIFO Ending Inventory 16 Description # of Units Cost per Unit Total Cost Fal 30.00 $ 990.00 8123 x -84 A 12 Required: 131) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic FIFO. 14 15 16 Description 17 Jan. 20 Purchase 18 Jan. 15 Purchase 19 20 21 22 Description 23 Beginning Inventory 24 Jan. 15 Purchase 25 D FIFO Ending Inventory # of Units Cost per Unit Total Cost 33 S 30.00 S 990.00 11 22.00 44 $ 242.00 1,232.00 FIFO Cost of Goods Sold # of Units 20 $ Cost per Unit 20,00 Total Cost 16 22.00 36 26 27 2) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic LIFO. 28 29 30 Description 31 Beginning Inventory 32 Jan. 15 Purchase 33 34 LIFO Ending Inventory # of Units Cost per Unit Total Cost 44. 823 A I X -84 D 272) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic LIFO. 28 29 30 Description LIFO Ending Inventory # of Units Cost per Unit Total Cost 31 Beginning Inventory 32 Jan. 15 Purchase $33 34 35 36 Description 37 Jan. 20 Purchase 38 Jan. 15 Purchase 39 40 44 LIFO Cost of Goods Sold # of Units Cost per Unit Total Cost 413) Using Periodic Weighted Average, first calculate the cost per unit using the formula below. 42 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold 43 44 45 46 Weighted Average Cost- 47 48 49 Cost of Goods Available for Sale Number of Units Available for Sale Weighted Average Ending Inventory Cost per Unit # of Units Total Cost per unit 40 41 3) Using Periodic Weighted Average, first calculate the cost per unit using the formula below. 42 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold. 43 44 45 46 Weighted Average Cost- Cost of Goods Available for Sale 47 48 49 #of Units Number of Units Available for Sale Weighted Average Ending Inventory Cost per Unit Total Cost 50 51 52 53 of Units Weighted Average Cost of Goods Sold Cost per Unit Total Cost 54 55 56 4) Use the given information and your calculated numbers to complete the Cost of Goods Sold 57 Equation below for all three inventory methods. (All numbers should be positive.) 58 59 Beginning Inventory 60 Add: Purchases 61 Goods Available for Sale 62 Less: Ending Inventory 63. Cost of Goods Solid READY Sheet1 FIFO LIFO Wtd. Avg. per unit 100% Weighted Average Ending Inventory Cost per Unit Total Cost 49 # of Units 50 51 52 53 # of Units 54 55 Weighted Average Cost of Goods Sold Cost per Unit Total Cost 56 4) Use the given information and your calculated numbers to complete the Cost of Goods Sold 57 Equation below for all three inventory methods. (All numbers should be positive.) 58 59 Beginning Inventory 60 Add: Purchases 61 Goods Available for Sale: 62 Less: Ending Inventory 63 Cost of Goods Sold 64 65 66 67 READY Sheet1 FIFO LIFO Wtd. Avg. E 100%