Problem $6-67$A

Inventory Costing Methods

Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December:

Activity Units Purchase Price

$($per unit$)$ Sale Price

$($per unit$)$

Beginning inventory $10$ $$8\mathrm{.}00$

Purchase $1,$ Dec. $2228\mathrm{.}80$

Purchase $2,$ Dec. $5269\mathrm{.}05$

Sale $1,$ Dec. $719$ $$20\mathrm{.}00$

Sale $2,$ Dec. $102520\mathrm{.}00$

Purchase $3,$ Dec. $12129\mathrm{.}80$

Sale $3,$ Dec. $142020\mathrm{.}00$

Anderson's uses a perpetual inventory system. All purchases and sales were for cash.

Required:

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$1.$ Compute cost of goods sold and the cost of ending inventory using FIFO. If required, round your answers to the nearest cent.

Cost of goods sold $fill in the blank $32$e$319$fb$202$d$056\_1$

Cost of ending inventory $fill in the blank $32$e$319$fb$202$d$056\_2$

$2.$ Compute cost of goods sold and the cost of ending inventory using LIFO. If required, round your answers to the nearest cent.

Cost of goods sold $fill in the blank $32$e$319$fb$202$d$056\_3$

Cost of ending inventory $fill in the blank $32$e$319$fb$202$d$056\_4$

$3.$ Compute cost of goods sold and the cost of ending inventory using the average cost method. $($Note: Use four decimal places for per$-$unit calculations.$)$ Round your answers to the nearest cent.

Cost of goods sold $fill in the blank $32$e$319$fb$202$d$056\_5$

Cost of ending inventory $fill in the blank $32$e$319$fb$202$d$056\_6$

Question Content Area

$4.$ Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method. If required, round your answers to the nearest cent.

Dec. $2$

$-$ Select $-$

$-$ Select $-$

$($Purchased inventory$)$

Dec. $5$

$-$ Select $-$

$-$ Select $-$

$($Purchased inventory$)$

Dec. $7$

$-$ Select $-$

$-$ Select $-$

$($Recorded cash sales to customers$)$

Dec. $7$

$-$ Select $-$

$-$ Select $-$

$($Recorded cost of goods sold$)$

Dec. $10$

$-$ Select $-$

$-$ Select $-$

$($Recorded cash sales to customers$)$

Dec. $10$

$-$ Select $-$

$-$ Select $-$

$($Recorded cost of goods sold$)$

Dec. $12$

$-$ Select $-$

$-$ Select $-$

$($Purchased inventory$)$

Dec. $14$

$-$ Select $-$

$-$ Select $-$

$($Recorded cash sales to customers$)$

Dec. $14$

$-$ Select $-$

$-$ Select $-$

$($Recorded cost of goods sold$)$

Question Content Area

$5.$ Conceptual Connection: Which method would result in the lowest amount paid for taxes?