Lastly on this worksheet please describe how total costs would change in period of rising cost if the company switched from LIFO to FIFO?

Transcribed Image Text:

Inventory Costing Solution (Periodic Inventory System) Science Education Supplies, Inc. began the year with 70 Biology Lab Microscopes in stock. The following table shows the quantities on hand and purchased during the year. Acquisition Dates Units Unit Cost Total Cost Beginning Inventory, Jan. 1 70 57.81 Purchases January 25 110 58.03 March 8 80 59.00 June 15 210 60.00 July 27 August 30 Units and Cost of Goods Available 70 63.00 60 64.00 for Sale Instructions: Determine the value of the ending inventory reported on the balance sheet and the value for cost of goods sold recognized on the income statement for the following four scenarios. Ending inventory consists of 150 microscopes for each scenario. Specific Identification Method: Assume the ending inventory consists of the 60 units acquired on August 30, 20 units acquired on July 27, and 70 units acquired on June 15. Acquisition Dates Units Unit Cost Total Cost Previous Inventory Costing Solution (Periodic Inventory System) Science Education Supplies, Inc. began the year with 70 Biology Lab Microscopes in stock. The following table shows the quantities on hand and purchased during the year. Acquisition Dates Units Unit Cost Total Cost Beginning Inventory, Jan. 1 70 57.81 Purchases January 25 110 58.03 March 8 80 59.00 June 15 210 60.00 July 27 August 30 Units and Cost of Goods Available 70 63.00 60 64.00 for Sale Instructions: Determine the value of the ending inventory reported on the balance sheet and the value for cost of goods sold recognized on the income statement for the following four scenarios. Ending inventory consists of 150 microscopes for each scenario. Specific Identification Method: Assume the ending inventory consists of the 60 units acquired on August 30, 20 units acquired on July 27, and 70 units acquired on June 15. Acquisition Dates Units Unit Cost Total Cost Previous

Answer rating: 100% (QA)

Inventory costing solution periodic inventory system Science Education Supplies Inc began the year with 70 biology lab microscopes in stock The following table shows the quantities on hand and purchas... View the full answer