Part 3: Seminole Company began year 2013 with 23,000 units of product in its Jan
ID: 2540799 • Letter: P
Question
Part 3: Seminole Company began year 2013 with 23,000 units of product in its January 1 inventory, at a cost of $15 for each unit. It made successive purchases of its product in year 2013, as follows. The company uses a periodic inventory system. On December 31, 2013, a physical count reveals that 40,000 units of its product remain in inventory. Mar. 7 May 25 Aug. 1 Nov. 10 30,000 units 39,000 units 23,000 units 35,000 units @ $18 each @ $20 each @ $25 each @ $26 each Show all of your work in an Excel spreadsheet for the following tasks: 1. Compute the number and total cost of the units available for sale in year 2013. 2. Compute the amounts assigned to the 2013 ending inventory, and the cost of goods sold for FIFO, LIFO, and weighted average. 3. The 110,000 units sold are $35 each. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average, which include a detailed cost of goods sold section as part of each statement. (Round your average cost per unit to 2 decimal places.)Explanation / Answer
Req 1: Total number and cost of goods avilable for sale UNITS COST Balance 23000 345000 Purchase mar7 30000 540000 Purchase mar 25 39000 780000 Purchase Aug 1 23000 575000 Purchase Nov 10 35000 910000 Total cost of goods availabe for sale 150000 3150000 Req 2: STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance 23000 15 345000 23000 15 345000 Purchasse 7-Mar 30000 18 540000 30000 18 540000 25-Mar 39000 20 780000 39000 20 780000 1-Aug 23000 25 575000 18000 25 450000 5000 25 125000 10-Nov 35000 26 910000 35000 26 910000 TOTAL 150000 3150000 110000 2115000 40000 1035000 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance 23000 15 345000 23000 15 345000 Purchasse 7-Mar 30000 18 540000 13000 18 234000 17000 18 306000 25-Mar 39000 20 780000 39000 20 780000 1-Aug 23000 25 575000 23000 25 575000 10-Nov 35000 26 910000 35000 26 910000 TOTAL 150000 3150000 110000 2499000 40000 651000 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance 23000 15 345000 Purchasse 7-Mar 30000 18 540000 25-Mar 39000 20 780000 1-Aug 23000 25 575000 10-Nov 35000 26 910000 TOTAL 150000 21 3150000 110000 21 2310000 40000 21 840000 Ending In. COGS FIFO 1035000 2115000 LIFO 651000 2499000 Average 840000 2310000 Req 3: Sales: 110000 units @35= $ 3850,000 COMPARATIVE INCOME STATEMENT FIFO LIFO Average Sales 3850000 3850000 3850000 Less: COGS 2115000 2499000 2310000 Gross Margin 1735000 1351000 1540000