Create financial statements. The supplies available at the end of fiscal 2015 year are at a cost of $7,900. The cost of expired insurance for the fiscal year is $10,600. Annual depreciation on equipment is $7,000; no other depreciation adjustment was made in 2015. The April utilities expense of $800 is not included in the adjusted trial balance, because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded.. The company’s employees have earned $2000 of accrued wages in the fiscal year. The rent expense not yet paid or recorded in the fiscal year is $3000. Additional property taxes of $550 have been assessed for the fiscal year, but have not yet been paid or recorded in the accounts. The $300 accrued interest for April has not yet been paid and reported. Part 3: The Warnerwood Company uses a perpetual inventory system. It entered the following purchases and sales transactions for March into the system: Date Activities Units Acquired at Cost Cost per Unit Units Sold at Retail Price per unit March 1 Beginning inventory 100 units $50 March 5 Purchase 400 units $55 March 9 Sales 420 $85 March 18 Purchase 120 units $60 March 25 Purchase 200 units $62 March 29 Sales 160 units $95 Totals 820 units 580 units Instructions: Show all of your work in an Excel spreadsheet for the following tasks: Compute the number of units available for sale. Compute the number of units in ending inventory. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and (c) weighted average. (Round the average cost per unit to 2 decimal places.) Compute the gross profit earned by the company for each of the three costing methods. (Round the average cost per unit to 2 decimal places.)
Recent Comments