BTN 6-4 Each team member has the responsibility to become an expert on an inventory method. This expertise will be used to facilitate teammates' understanding of the concepts relevant to that method. 1. Each learning team member should select an area for expertise by choosing one of the following inventory methods: specific identification, LIFO, FIFO, or weighted average. 2. [not relevant to our class] 3. Using the following data, each student is to develop a presentation that illustrates the relevant concepts and procedures for its inventory method. Data The company uses a perpetual inventory system. It had the following beginning inventory and current-year purchases of its product. Jan. I Beginning inventory... 50 units @ $100 = $ 5,000 Jan. 14 Apr. 30 Sept. 26 Purchase 150 units @ $120 = 18,000 Purchase 200 units @ $150 = 30,000 Purchase 300 units @ $200 = 60,000 The company transacted sales on the following dates at a $350 per unit sales price. Jan. 10 30 units (specific cost: 30 @ $100) Feb. 15 100 units (specific cost: 100 @ $120) Oct. 5 350 units (specific cost: 100 @ $150 and 250 @ $200) Concepts and Procedures to Illustrate in Expert Presentation a. Identify and compute the costs to assign to the units sold. (Round per unit costs to three decimals.) b. Identify and compute the costs to assign to the units in ending inventory. (Round inventory balances to the dollar.) c. How likely is it that this inventory costing method will reflect the actual physical flow of goods? How relevant is that factor in determining whether this is an acceptable method to use? d. What is the impact of this method versus others in determining net income and income taxes? e. How closely does the ending inventory amount reflect replacement cost?
BTN 6-4 Each team member has the responsibility to become an expert on an inventory method. This expertise will be used to facilitate teammates' understanding of the concepts relevant to that method. 1. Each learning team member should select an area for expertise by choosing one of the following inventory methods: specific identification, LIFO, FIFO, or weighted average. 2. [not relevant to our class] 3. Using the following data, each student is to develop a presentation that illustrates the relevant concepts and procedures for its inventory method. Data The company uses a perpetual inventory system. It had the following beginning inventory and current-year purchases of its product. Jan. I Beginning inventory... 50 units @ $100 = $ 5,000 Jan. 14 Apr. 30 Sept. 26 Purchase 150 units @ $120 = 18,000 Purchase 200 units @ $150 = 30,000 Purchase 300 units @ $200 = 60,000 The company transacted sales on the following dates at a $350 per unit sales price. Jan. 10 30 units (specific cost: 30 @ $100) Feb. 15 100 units (specific cost: 100 @ $120) Oct. 5 350 units (specific cost: 100 @ $150 and 250 @ $200) Concepts and Procedures to Illustrate in Expert Presentation a. Identify and compute the costs to assign to the units sold. (Round per unit costs to three decimals.) b. Identify and compute the costs to assign to the units in ending inventory. (Round inventory balances to the dollar.) c. How likely is it that this inventory costing method will reflect the actual physical flow of goods? How relevant is that factor in determining whether this is an acceptable method to use? d. What is the impact of this method versus others in determining net income and income taxes? e. How closely does the ending inventory amount reflect replacement cost?
Accounting Information Systems
11th Edition
ISBN:9781337552127
Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Chapter1: Introduction To Accounting Information System
Section: Chapter Questions
Problem 4P
Related questions
Question
I need help with answering parts A-E on this question listed at the bottom. I am using the FIFO method.
![BTN 6-4
Each team member has the responsibility to become an expert on an inventory method. This expertise will be used to facilitate
teammates' understanding of the concepts relevant to that method.
1. Each learning team member should select an area for expertise by choosing one of the following inventory methods:
specific identification, LIFO, FIFO, or weighted average.
2. [not relevant to our class]
3. Using the following data, each student is to develop a presentation that illustrates the relevant concepts and procedures for
its inventory method.
Data
The company uses a perpetual inventory system. It had the following beginning inventory and current-year purchases of its
product.
Jan. I Beginning inventory...
50 units @ $100 = $ 5,000
Jan. 14
Apr. 30
Sept. 26
Purchase
150 units @ $120 = 18,000
Purchase
200 units @ $150 = 30,000
Purchase
300 units @ $200 = 60,000
The company transacted sales on the following dates at a $350 per unit sales price.
Jan. 10
30 units (specific cost: 30 @ $100)
Feb. 15 100 units (specific cost: 100 @ $120)
Oct. 5 350 units (specific cost: 100 @ $150 and 250 @ $200)
Concepts and Procedures to Illustrate in Expert Presentation
a. Identify and compute the costs to assign to the units sold. (Round per unit costs to three decimals.)
b. Identify and compute the costs to assign to the units in ending inventory. (Round inventory balances to the dollar.)
c. How likely is it that this inventory costing method will reflect the actual physical flow of goods? How relevant is that
factor in determining whether this is an acceptable method to use?
d. What is the impact of this method versus others in determining net income and income taxes?
e. How closely does the ending inventory amount reflect replacement cost?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5dfec64e-d881-4d9d-ad8a-fab68a96d68f%2F422982d8-4eef-42ae-a41b-d25df9271980%2Fbugk8au_processed.png&w=3840&q=75)
Transcribed Image Text:BTN 6-4
Each team member has the responsibility to become an expert on an inventory method. This expertise will be used to facilitate
teammates' understanding of the concepts relevant to that method.
1. Each learning team member should select an area for expertise by choosing one of the following inventory methods:
specific identification, LIFO, FIFO, or weighted average.
2. [not relevant to our class]
3. Using the following data, each student is to develop a presentation that illustrates the relevant concepts and procedures for
its inventory method.
Data
The company uses a perpetual inventory system. It had the following beginning inventory and current-year purchases of its
product.
Jan. I Beginning inventory...
50 units @ $100 = $ 5,000
Jan. 14
Apr. 30
Sept. 26
Purchase
150 units @ $120 = 18,000
Purchase
200 units @ $150 = 30,000
Purchase
300 units @ $200 = 60,000
The company transacted sales on the following dates at a $350 per unit sales price.
Jan. 10
30 units (specific cost: 30 @ $100)
Feb. 15 100 units (specific cost: 100 @ $120)
Oct. 5 350 units (specific cost: 100 @ $150 and 250 @ $200)
Concepts and Procedures to Illustrate in Expert Presentation
a. Identify and compute the costs to assign to the units sold. (Round per unit costs to three decimals.)
b. Identify and compute the costs to assign to the units in ending inventory. (Round inventory balances to the dollar.)
c. How likely is it that this inventory costing method will reflect the actual physical flow of goods? How relevant is that
factor in determining whether this is an acceptable method to use?
d. What is the impact of this method versus others in determining net income and income taxes?
e. How closely does the ending inventory amount reflect replacement cost?
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