The following table summarizes the inventory movement for Seinfeld & Fleming Inc. ("S&F"), during its most recent fiscal year ending December 31. S&F is a retail business that uses a perpetual inventory system and sells one product: beltless trench-coats.

Date           Transaction Units                                     Unit Cost            Unit Price
Jan 1          Beginning inventory                                          500                      $23
Jan 13        Purchase                                                           1000                         28
Feb 6         Sale                                                                      700                       $48
Apr 7         Purchase                                                             500                         29
Apr 10       Returned items purchased Apr                          7                       100
Jul 5           Sale                                                                      900                         55
Oct 22       Purchase                                                            300                         31

Required:

a) Assume that S&F uses the FIFO inventory costing method. Calculate the following (round your answers to nearest dollar):

Cost of goods sold - February 6: Blank 1. Calculate the answer by read surrounding text.
Cost of goods sold - July 5: Blank 2. Calculate the answer by read surrounding text.
Ending inventory: Blank 3. Calculate the answer by read surrounding text.

b) Assume that S&F uses the (weighted) average costing method. Calculate the following (round to nearest dollar):

Cost of goods sold - February 6: Blank 4. Calculate the answer by read surrounding text.
Cost of goods sold - July 5: Blank 5. Calculate the answer by read surrounding text.
Which method produces the highest net income? Enter 0 for FIFO and 1 for average cost: Blank 6. Calculate the answer by read surrounding text.

c) Now, assume that S&F has a periodic inventory system and uses the FIFO method for inventory costing. Complete the following partial income statement for the year ending December 31 (round all amounts to the nearest dollar).

Sales revenue Blank 7. Calculate the answer by read surrounding text.
Cost of goods sold Blank 8. Calculate the answer by read surrounding text.
Gross profit Blank 9. Calculate the answer by read surrounding text.

Answer rating: 100% (QA)

Answer Solution A B D G K L Perpetual FIFO 2 Purchases Cost of sale closing inventory Total cost per ... View the full answer