Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

what is the structure that tapeworm use to attach to their hos what is the struc

ID: 2568804 • Letter: W

Question

what is the structure that tapeworm use to attach to their hos what is the structure that tapeworm use to attach to their hos what is the structure that tapeworm use to attach to their hos Course: Assignment: Chapter 6 Inventory Assignment Due Date: November 15, 2017 Principles of Accounting I sted Ualimited Inc. is a local distributor of running shoes and other related items. sted below is information concerning one of their products, running shoes: Date September1 Beg. Inventory September 8 Purchase September 10 Sale September 20 Purchase September 29 Sale TransactionQuantity Price Cost 200 100 150 300 250 S70.00 5 80.00 S 100.00 5 90.00 5 125.00 Additional Information: Running Unlimited Inc. has decided to use the periodic inventory system. Required: I. Create a worksheet to complete the following schedule for Running Unlimited Incorporated Inventory Method a. FIFO b. Average Cost cLIFO Ending Inventory Cest of Goods Sold Gross Profit II. Answer the following questions Which inventory method would require Running Unlimited Inc. to pay the lowest amount of income taxes? 1. h inventory method would provide the highest gross profit for Running Unlimited Incorporated? Which inventory method would provide the lowest ending inve Running Unlimited Incorporated? ntory for Page I of 2

Explanation / Answer

Sales

Date

No. of Units

Unit cost

Total Cost

Sep. 10

150

$100.00

$15,000

Sep.29

250

$125.00

$31,250

Total

400

$46,250

FIFO - Ending Inventory

Date

No. of Units

Unit cost

Total Cost

Beg. Inventory

$70.00

$0

Sep.8

$80.00

$0

Sep.20

200

$90.00

$18,000

Total

200

$18,000

FIFO - Cost of goods sold

Date

No. of Units

Unit cost

Total Cost

Beg. Inventory

200

$70.00

$14,000

Sep.8

100

$80.00

$8,000

Sep.20

100

$90.00

$9,000

Total

400

$31,000

LIFO - Ending Inventory

Date

No. of Units

Unit cost

Total Cost

Beg. Inventory

200

$70.00

$14,000

Sep.8

$80.00

$0

Sep.20

$90.00

$0

Total

200

$14,000

LIFO - Cost of goods sold

Date

No. of Units

Unit cost

Total Cost

Beg. Inventory

$70.00

$0

Sep.8

100

$80.00

$8,000

Sep.20

300

$90.00

$27,000

Total

400

$35,000

Weighted Average cost method

Date

No. of Units

Unit cost

Total Cost

Beg. Inventory

200

$70.00

$14,000

Sep.8

100

$80.00

$8,000

Sep.20

300

$90.00

$27,000

Total

600

$49,000

Average cost

$81.67

Ending Inventory

200

$16,333

Cost of goods sold

400

$32,667

Inventory Method

Ending Inventory

Cost of Goods sold

Gross profit

FIFO

$18,000

$31,000

$15,250

Average cost

$16,333

$32,667

$13,583

LIFO

$14,000

$35,000

$11,250

1. Which inventory method would require Running Unlimited to pay lowest income tax.

LIFO Method has highest cost of goods sold, hence it gives lowest gross profit. This method will pay lowest income tax.

2. Which inventory method would provide highest gross profit for Running Unlimited.

FIFO Method has Lowest cost of goods sold, hence it gives highest gross profit.

3. Which inventory method would provide lowest ending inventory for Running Unlimited.

LIFO Method has highest cost of goods sold, hence it gives lowest ending inventory.

Sales

Date

No. of Units

Unit cost

Total Cost

Sep. 10

150

$100.00

$15,000

Sep.29

250

$125.00

$31,250

Total

400

$46,250

FIFO - Ending Inventory

Date

No. of Units

Unit cost

Total Cost

Beg. Inventory

$70.00

$0

Sep.8

$80.00

$0

Sep.20

200

$90.00

$18,000

Total

200

$18,000

FIFO - Cost of goods sold

Date

No. of Units

Unit cost

Total Cost

Beg. Inventory

200

$70.00

$14,000

Sep.8

100

$80.00

$8,000

Sep.20

100

$90.00

$9,000

Total

400

$31,000

LIFO - Ending Inventory

Date

No. of Units

Unit cost

Total Cost

Beg. Inventory

200

$70.00

$14,000

Sep.8

$80.00

$0

Sep.20

$90.00

$0

Total

200

$14,000

LIFO - Cost of goods sold

Date

No. of Units

Unit cost

Total Cost

Beg. Inventory

$70.00

$0

Sep.8

100

$80.00

$8,000

Sep.20

300

$90.00

$27,000

Total

400

$35,000

Weighted Average cost method

Date

No. of Units

Unit cost

Total Cost

Beg. Inventory

200

$70.00

$14,000

Sep.8

100

$80.00

$8,000

Sep.20

300

$90.00

$27,000

Total

600

$49,000

Average cost

$81.67

Ending Inventory

200

$16,333

Cost of goods sold

400

$32,667

Inventory Method

Ending Inventory

Cost of Goods sold

Gross profit

FIFO

$18,000

$31,000

$15,250

Average cost

$16,333

$32,667

$13,583

LIFO

$14,000

$35,000

$11,250

1. Which inventory method would require Running Unlimited to pay lowest income tax.

LIFO Method has highest cost of goods sold, hence it gives lowest gross profit. This method will pay lowest income tax.

2. Which inventory method would provide highest gross profit for Running Unlimited.

FIFO Method has Lowest cost of goods sold, hence it gives highest gross profit.

3. Which inventory method would provide lowest ending inventory for Running Unlimited.

LIFO Method has highest cost of goods sold, hence it gives lowest ending inventory.