90.2K

Verified Solution

Link Copied!

Pronghorn Limited stocks a variety of sports equipment for sale to institutions. The following stock record card for basketballs was taken from the records at the December 31, 2020 year end: Date Jan. 1 15 Invoice Number balance 10624 11437 Units Received 104 60 70 Unit Invoice Cost $20 20 16 Gross Invoice Amount $2,080 1,200 1,120 Mar. 15 Terms Net 30 Net 30 1/5, net 30 1/10, net 30 1/10, net 30 1/10, net 30 June 20 21332 95 15 1,425 Sept. 12 27644 88 12 1,056 Nov. 24 31269 80 11 880 Totals 497 $7,761 A physical inventory on December 31, 2020, reveals that 100 basketballs are in stock. The bookkeeper informs you that all the discounts were taken. Assume that Pronghorn Limited uses a periodic inventory system and records purchases at their invoice price less discounts. During 2020, the average sales price per basketball was $22.25. Calculate the December 31, 2020 inventory using the FIFO formula. (Round answer Ending inventory LINK TO TEXT LINK TO TEXT * Your answer is incorrect. Try again. Calculate the December 31, 2020 inventory using the weighted average cost formula Ending inventory Prepare income statements for the year ended December 31, 2020, as far as the "gross profit" line under each of the FIFO and weighted average methods, and calculate the gross profit rate for each FIFO Sales Cost of Goods Sold T Beginning Inventory Purchases Less Ending Inventory Gross Profit/ (Loss) Gross profit rate Weighted Average Sales Cost of Goods Sold T Beginning Inventory Purchases Less T Ending Inventory Gross Profit/ (Loss) Gross profit rate

Answer & Explanation Solved by verified expert

See Answer