P6.23 Calculating the Value of Ending Inventory and Cost of Goods Sold: Periodic Method. Desmond Con-...

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P6.23 Calculating the Value of Ending Inventory and Cost of Goods Sold: Periodic Method. Desmond Con- TA 2, 3, solidated, Inc. is a leading manufacturer of steel products. The following inventory data relates to the firm's production during the first quarter of 2020: Date of Purchase Jan. 1 Jan. 15 Feb. 7.. Feb. 21 March 15. Tons of Raw Steel Purchased Purchase Price per Ton Total Cost 500 $38 $19,000 700 35 24,500 200 33 6,600 450 30 13,500 350 43 15,050 2,200 $78,650 At the end of the first quarter of 2020, Desmond's internal auditors determined that 1,700 tons of raw steel had been processed and sold. Required 1. Calculate the cost of steel processed and sold during the quarter under each of the following methods, assuming use of a periodic inventory management system: a. FIFO b. LIFO c. Weighted-average 2. Assume that the net realizable value per ton is $38.50 at the end of the quarter. What amount should Des- mond's ending inventory be valued at on its March 31 balance sheet under each of the following methods? a. FIFO b. LIFO c. Weighted-average 3. Which method FIFO, LIFO, or the weighted-average cost method should Desmond use for reporting its financial results to its shareholders? Why? How does this decision constrain the company's method P6.23 Calculating the Value of Ending Inventory and Cost of Goods Sold: Periodic Method. Desmond Con- TA 2, 3, solidated, Inc. is a leading manufacturer of steel products. The following inventory data relates to the firm's production during the first quarter of 2020: Date of Purchase Jan. 1 Jan. 15 Feb. 7.. Feb. 21 March 15. Tons of Raw Steel Purchased Purchase Price per Ton Total Cost 500 $38 $19,000 700 35 24,500 200 33 6,600 450 30 13,500 350 43 15,050 2,200 $78,650 At the end of the first quarter of 2020, Desmond's internal auditors determined that 1,700 tons of raw steel had been processed and sold. Required 1. Calculate the cost of steel processed and sold during the quarter under each of the following methods, assuming use of a periodic inventory management system: a. FIFO b. LIFO c. Weighted-average 2. Assume that the net realizable value per ton is $38.50 at the end of the quarter. What amount should Des- mond's ending inventory be valued at on its March 31 balance sheet under each of the following methods? a. FIFO b. LIFO c. Weighted-average 3. Which method FIFO, LIFO, or the weighted-average cost method should Desmond use for reporting its financial results to its shareholders? Why? How does this decision constrain the company's method