Please answer all questions and show work. Thank you in advance! Project #6: I V
ID: 2519139 • Letter: P
Question
Please answer all questions and show work. Thank you in advance! Project #6: I Valuation Fido's Food Mart Adjusted Trial Balance December 31,20XX Debits Credits Account Title Cash Accounts Receivable Inventory Supplies Prepaid Insurance Equipment Vehicle 52,898 12,250 83,720 650 320 30,550 12,250 0 62,128 275 12,000 42,000 Less: Accumulated Depreciation- Equipment & Vehicle Accounts Payable Unearned Revenue (Gift Cards) Bonds Payable (mature 12/31/XX) Common Stock (200 share @ $210/share, par $210) Retained Earnings Sales Revenue Less: Sales Discount Cost of Goods Sold Operating Expenses Depreciation Expense Insurance Expense Rent Expense Supplies Expense Wages Expense Totals 134,725 40 1,000 34,840 0 160 5,750 1,200 15,500 251,128 251,128 Inventory Data for Dog Food Date 01-Sep Sept Oct Beg. Inv Purchase Purchase Purchase Purchase 0 40 349 1,500 1,690 Cost each $0.00 $25.00 $30.00 $20.00 $25.00 Dec
Explanation / Answer
1.
Working:
2. Under FIFO, ending inventory is valued at the latest purchase price.
3. Under LIFO, the inventory is valued at the oldest prices.
4.
Cost of goods available for sale 83720