Problem 8.1A (Static) Four Methods of Inventory Valuation (LO8-1) On January 15, 2021, Sports World sold 1,000 Ace-5 fishing reels to Angler's Warehouse. Immediately prior to this sale, Sports World perpetual inventory records for Ace-5 reels included the following cost layers. Purchase Date Quantity Unit Cost Total Cost $ 17,400 Dec. 12, 2020 600 Jan. 9, 2021 $ 29 900 32 28,800 $ 46,200 Total on hand 1,500 Required: a. Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,000 Ace-5 reels, assuming that Sports World uses: 1. Specific identification (500 of the units sold were purchased on December 12, and the remaining 500 were purchased on January 9). 2. Average cost. 3. FIFO. 4. LIFO. b. Complete a subsidiary ledger record for Ace-5 reels using each of the four inventory valuation methods listed above. Your inventory records should show both purchases of this product, the sale on January 15, and the balance on hand at December 12, January 9, and January 15. 1. Specific identification method. 2. Average-cost method. 3. First-in, First-out (FIFO) method. 4. Last-in, First-out (LIFO) method.

Problem 8.1A (Static) Four Methods of Inventory Valuation (LO8-1) On January 15, 2021, Sports World sold 1,000 Ace-5 fishing reels to Angler's Warehouse. Immediately prior to this sale, Sports World perpetual inventory records for Ace-5 reels included the following cost layers. Purchase Date Quantity Unit Cost Total Cost $ 17,400 Dec. 12, 2020 600 Jan. 9, 2021 $ 29 900 32 28,800 $ 46,200 Total on hand 1,500 Required: a. Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,000 Ace-5 reels, assuming that Sports World uses: 1. Specific identification (500 of the units sold were purchased on December 12, and the remaining 500 were purchased on January 9). 2. Average cost. 3. FIFO. 4. LIFO. b. Complete a subsidiary ledger record for Ace-5 reels using each of the four inventory valuation methods listed above. Your inventory records should show both purchases of this product, the sale on January 15, and the balance on hand at December 12, January 9, and January 15. 1. Specific identification method. 2. Average-cost method. 3. First-in, First-out (FIFO) method. 4. Last-in, First-out (LIFO) method.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...

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