Exercise 5-2B

d. -wosid produce the same unit cost for aasint e. would produce the louest amount of net income in an inflationary environment. f. woald producc an asset value that was the same regardless of whether the environment was The Shirt Shop had the fol inflationary of deflationary. 2. - would produce the lowest amount of assets in an inflationary environment. h. - woeld produce the highest amoant of assets in a dellationary environment. Exercise 5-28 Allocating product cost between cost of goods sold and ending inventory Harris co. started the year with no inventory. During the year, it purchased two identical inventon teme The inventory was purchased at different times. The first purchase cost $3,600 and the othet. 14,200. Owe of the items was wold during the year. 2. F: 4. Weighted avenee? Exercise 5-38 Allocating product cost between cost of goods sold and ending inventory: multiple purchases Marteg Company wells coffoc makers used in business offices, its beginning inventory of coffee maters was 400 units an 550 per wirit. Daring the yest, Marley made two batch purchases of coffee makers The Durine the seriod. Marchase at 1.200 coffee makers. Requited g. - would produce the lowest amount of assets in an inflationary environment. h. would produce the highest amount of assets in a deflationary environment. Exercise 5-2B Allocating product cost between cost of goods sold and ending inventory Harris Co. started the year with no inventory. During the year, it purchased two identical inventory items. The inventory was purchased at different times. The first purchase cost $3,600 and the other, $4,200. One of the items was sold during the year. Required Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory on the year-end financial statements, assuming use of a. FIFO? b. LIFO? c. Weighted average? Exercise 5-3B Allocating product cost between cost of goods sold and ending inventory: multiple purchases Marley Company sells coffee makers used in business offices. Its beginning inventory of coffee makers was 400 units at $50 per unit. During the year. Marley made two batch purchases of coffee makers. The first was a 500 -unit purchase at $55 per unit; the second was a 600 -unit purchase at $58 per unit. d. _ would produce the same unit cost for assits and cost of goods sold in an inflationary environment. e. would produce the lowest amount of net isewai in an inflationary environment. f. would produce an asset value that was the same regardless of whether the environment wis inflationary or deflationary. g. Would produce the lowest amount of assets in an inflationary environment. h. would produce the highest amount of assets in a deflationary environment. Exercise 5-2B Allocating product cost befween cost of goods sold and ending invemtory Harris Co, started the year with no inventory. During the year, it purchased two identical inventor) items. The inventory was purchased at different times. The first parchase cost $3,600 and the othet $4,200. One of the items was sold during the year. Required Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory on the yearend financial statements, assuming use of 4. FIFO? b. LIFO? c. Weighted average? Exercise 5-3B Allocating product cost between cost of goods sold and ending inventory: multiple purchases Marley Company selis coffee makers used in business offices. Its beginning inventory of coffee makers was 400 units at $50 per unit. During the year, Marley made two batch purehases of coffee makers. The first was u 500 -unit purchase at $55 per unit; the second was a 600 -unit purchase at $58 ner unit