Question: Consider the following information related to the inventory of Mini-minors, kids apparel brand for the...

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Question: Consider the following information related to the inventory of "Mini-minors", kids apparel brand for the month of Mar 2022: 1. Opening balance 800 units @ $8 each 2. Purchase 2000 units @ $10 each 3. Sales 1400 units @ $24 each 4. Purchases 2400 units @ $12 each 5. Sales 2000 units @ $24 each 6. Purchase 1600 units @ $14 each 7. Sale 1000 units @ $24 each Requirements: A. Calculation based a) Enter the above transactions in the books of accounts under the periodic system of accounting. b) Calculate the cost of inventory using FIFO, LIFO, and weighted average methods. B. Discussion based (Please use/ refer examples in your explanation) 1. Why do companies keep inventory? 2. When a product is sold, what happens to the cost of inventory associated with the product? 3. Why would a manager choose one method of inventory over the other? What are the benefits of each inventory method? 4. Why is price inflation important to consider in choosing an inventory method? 5. Based on your calculations, what would you recommend to "Mini-minor" management in terms of inventory management? Question: Consider the following information related to the inventory of "Mini-minors", kids apparel brand for the month of Mar 2022: 1. Opening balance 800 units @ $8 each 2. Purchase 2000 units @ $10 each 3. Sales 1400 units @ $24 each 4. Purchases 2400 units @ $12 each 5. Sales 2000 units @ $24 each 6. Purchase 1600 units @ $14 each 7. Sale 1000 units @ $24 each Requirements: A. Calculation based a) Enter the above transactions in the books of accounts under the periodic system of accounting. b) Calculate the cost of inventory using FIFO, LIFO, and weighted average methods. B. Discussion based (Please use/ refer examples in your explanation) 1. Why do companies keep inventory? 2. When a product is sold, what happens to the cost of inventory associated with the product? 3. Why would a manager choose one method of inventory over the other? What are the benefits of each inventory method? 4. Why is price inflation important to consider in choosing an inventory method? 5. Based on your calculations, what would you recommend to "Mini-minor" management in terms of inventory management?

Answer rating: 100% (QA)

A Calculation based a Enter the above transactions in the books of accounts under the periodic system of accounting Opening Balance Debit Inventory 800 units 8 each 6400 Credit CashBank 6400 Purchase ... View the full answer