FIFO - Ending Inventory		Units	Cost per Unit	Ending Inventory
Total
b. Last-In, First-Out
LIFO - Cost of Goods Sold		Units	Cost per Unit	COGS
Total
LIFO - Ending Inventory		Units	Cost per Unit	Ending Inventory
Total
c. Weighted Average
		Total Units	Total Cost	Cost per Unit
Total Inventory
Cost of Goods Sold
Ending Inventory:
d. - Income Statement, including Computation of Income Tax Expense and Net Income
		FIFO	LIFO	Weight Av.
Sales
Cost of Goods Sold
Gross Margin
Operating Expenses		9,000	9,000	9,000
Income Before Tax
Income Tax	34%
Net Income
e. Selection of Inventory Costing Method Cost? Explain why the selected method is appropriate

H11 G H I per Unit 140 A B D E F 1 2 3 Instructions: Use formulas and cell references! 4 Information about inventory purchases and sales for Part #361A for 5 the Royce Company are presented below. 6 7 In Sections A,B,&C - calculate cost of goods sold & ending inventory 8 using FIFO, LIFO, & Weighted Average methods. 9 10 Complete comparative Income Statements in Section D using your 11 answers from Sections A,B,&C. 12 13 In Section E you will select one of the inventory costing methods to 14 recommend to the business based on the results in Sections A-D. 15 16 Complete the monthly inventory entries in Section F based on the 17 inventory costing method selected in Section E. 18 19 Inventory Part #361A 20 Cost 21 Units Cost 22 Beginning Inventory $ 80 $ 11,200 23 First Purchase 125 84 $ 10,500 Second Purchase 165 14,850 25 Total Available Inventory 430 36,550 26 27 28 375 units sold 29 $150 sales price per unit 30 31 32 a. First-In, First-Out 33 Cost 34 FIFO - Cost of Goods Sold Units COGS 35 36 37 38 Total 39 40 41 Cost Ending 42 FIFO - Ending Inventory Units Inventory 43 44 45 Sheet1 + 90$ per Unit per Unit 107 104 f. Monthly Inventory Entries - Record each entry above the description based on amounts in 105 Sections A through D above. 106 Accounts Debit Credit 108 First purchase of 125 units. 109 110 111 112 Second purchase of 165 units. 113 114 115 116 Sale of 375 units on account at $150 each; terms 2/10, n/30. 117 Be sure to use the inventory costing method chosen in Section E. 118 119 120 121 122 123 Granted $450 of sales allowance to a customer. 124 125 126 127 Received payment from sales above within the discount period. 128 129 130 131 132 Completed physicial inventory, and recorded $500 adjustment for 133 inventory shrinkage. 134 135 126