Solve problem E part a only.

This book is licensed under a Creative Commons Attribution 3.0 License Problem C Brett Company sells personal computers and uses the specific identification method to account for its inventory. On 2010 November 30, the company had 46 Orange III personal computers on hand that were acquired on the following dates and at these stated costs: Brett sold 36 Orange III computers at USD 12,720 each in December. There were no purchases of this model in December. Compute the gross margin on December sales of Orange III computers assuming the company shipped those units that would maximize reported gross margin. Repeat part (a) assuming the company shipped those units that would minimize reported gross margin for December. In view of your answers to parts (a) and (b), what would be your reaction to an assertion that the specific identification method should not be considered an acceptable method for costing inventory? Problem D The inventory records of Thimble Company show the following: March 1 Beginning inventory consists of 10 units costing USD 40 per unit. 3 Sold 5 units at USD 94 per unit. 10 Purchased 16 units at USD 48 per unit. 12 Sold 8 units at USD 96 per unit. 20 Sold 7 units at USD 96 per unit. 25 Purchased 16 units at USD 50 per unit. 31 Sold 8 units at USD 96 per unit. Assume all purchases and sales are made on credit. Using FIFO perpetual inventory procedure, prepare the appropriate journal entries for March. The following purchases and sales for Ripple Company are for April 2010. There was no inventory on April 1. Compute the ending inventory as of 2010 April 30, using perpetual inventory procedure, under each of the following methods: (1) FIFO, (2) LIFO, and (3) weighted-average (carry unit cost to four decimal places and round total cost to nearest dollar). Repeat a using periodic inventory procedure. Problem F Refer to the data in problem E Using LIFO perpetual inventory procedure, prepare the journal entries for the purchases and sales (Cost of Goods Sold entry only)