Science Education Supplies, Inc. began the year with 70 Biology Lab Microscopes in stock. The following...

   

Transcribed Image Text:

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 Beginning Inventory, Jan. 1 Purchases January 25 March 8 June 15 July 27 August 30 Units and Cost of Goods Available for Sale Acquisition Dates Units Ending Inventory Value Total Cost of Goods Available Less: Ending Inventory 70 110 80 210 70 60 Units Unit Cost 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. 57.81 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. 58.03 59,00 60.00 63.00 64.00 Total Cost Unit Cost Total Cost Total Cost of Goods Available Less: Ending Inventory Cost of Goods Sold Value: Weighted Average Cost Method Weighted Avg. Cost per Unit= Units in Ending Inventory- Ending Inventory Value= FIFO (First-In First-Out) Method Compute Ending Inventory Acquisition Dates Ending Inventory Value= Compute Cost of Goods Sold Total Cost of Goods Available Less: Ending Inventory Cost of Goods Sold Value: LIFO (Last-In First-Out) Method Compute Ending Inventory Units Unit Cost Weighted Avg. Cost per Unit= Units Sold Cost of Goods Sold = Total Cost LIFO (Last-In First-Out) Method Compute Ending Inventory Acquisition Dates Ending Inventory Value = Compute Cost of Goods Sold Total Cost of Goods Available Less: Ending Inventory Cost of Goods Sold Value: Units Unit Cost Total Cost 1. Which inventory valuation method will be likely to approximate replacement cost on the balance sheet? 2. During periods when prices continue to rise, which inventory valuation method will result in the highest net income being reported? 3. During periods when prices continue to reise, which inventory valuation method will result in the lowest net income being reported? 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 Beginning Inventory, Jan. 1 Purchases January 25 March 8 June 15 July 27 August 30 Units and Cost of Goods Available for Sale Acquisition Dates Units Ending Inventory Value Total Cost of Goods Available Less: Ending Inventory 70 110 80 210 70 60 Units Unit Cost 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. 57.81 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. 58.03 59,00 60.00 63.00 64.00 Total Cost Unit Cost Total Cost Total Cost of Goods Available Less: Ending Inventory Cost of Goods Sold Value: Weighted Average Cost Method Weighted Avg. Cost per Unit= Units in Ending Inventory- Ending Inventory Value= FIFO (First-In First-Out) Method Compute Ending Inventory Acquisition Dates Ending Inventory Value= Compute Cost of Goods Sold Total Cost of Goods Available Less: Ending Inventory Cost of Goods Sold Value: LIFO (Last-In First-Out) Method Compute Ending Inventory Units Unit Cost Weighted Avg. Cost per Unit= Units Sold Cost of Goods Sold = Total Cost LIFO (Last-In First-Out) Method Compute Ending Inventory Acquisition Dates Ending Inventory Value = Compute Cost of Goods Sold Total Cost of Goods Available Less: Ending Inventory Cost of Goods Sold Value: Units Unit Cost Total Cost 1. Which inventory valuation method will be likely to approximate replacement cost on the balance sheet? 2. During periods when prices continue to rise, which inventory valuation method will result in the highest net income being reported? 3. During periods when prices continue to reise, which inventory valuation method will result in the lowest net income being reported?